Henllys leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Henllys tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Henllys you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Henllys leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Henllys with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Henllys,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Henllys valuers.
Last Winter Leon, came perilously close to the 80-year threshold with the lease on his basement apartment in Henllys. In buying his property 19 years ago, the lease term was of minimal importance. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Leon was able to extend his lease just ahead of time in September. Leon and the landlord eventually settled on sum of £6,000 . If the lease had descended below 80 years, the figure would have escalated by a minimum £925.
Dr B Thomas owned a first floor flat in Henllys in September 2005. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Similar residencies in Henllys with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 invoiced per annum. The lease concluded in 2080. Given that there were 54 years remaining we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
Mr and Mrs. K Bell completed a purpose-built apartment in Henllys in October 2008. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Henllys with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2091. Considering the 65 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.