Chances are that where you own a flat in Henlow you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Henlow can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Henlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Eliot, came perilously near to the eighty-year mark with the lease on his basement apartment in Henlow. In buying his property twenty years previously, the lease term was of little importance. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. Eliot extended the lease just ahead of time in March. Eliot and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had dipped to less than eighty years, the amount would have escalated by at least £925.
Dr C Bell moved into a studio apartment in Henlow in October 2008. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Henlow with 100 year plus lease were worth £216,000. The average ground rent payable was £60 billed monthly. The lease elapsed in 2084. Taking into account 58 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Last Christmas we were phoned by Mr and Mrs. A Patel , who moved into a one bedroom flat in Henlow in June 1997. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical homes in Henlow with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2104. Having 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £7,600 and £8,800 exclusive of legals.