Henlow residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Henlow can be a difficult process. We recommend you secure guidance from a lawyer 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 procuring 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 October Callum, came very near to the 80-year mark with the lease on his one bedroom flat in Henlow. Having purchased his flat 19 years ago, the length of the lease was of no importance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Callum arranged for a lease extension just under the wire last September. Callum and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If the lease had descended to less than 80 years, the premium would have escalated by a minimum £1,075.
In 2010 we were approached by Ms Jessica Lewis who, having completed a one bedroom apartment in Henlow in March 2006. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar residencies in Henlow with 100 year plus lease were valued around £265,200. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated on 28 October 2092. Having 66 years left we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.
Mr and Mrs. H Walker took over the lease of a first floor apartment in Henlow in November 2008. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical flats in Henlow with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease expiry date was in 2081. Having 55 years left we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.