When it comes to domestic leasehold property in Henlow, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Anyone in Henlow with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the relevant legislation the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Henlow with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Henlow can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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.
Cameron was the the leasehold proprietor of a conversion flat in Henlow on the market with a lease of fraction over 59 years remaining. Cameron informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2012 we were e-mailed by Mrs U Moore who, having completed a ground floor apartment in Henlow in September 2008. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Henlow with a long lease were worth £189,000. The average ground rent payable was £55 invoiced per annum. The lease expired in 2078. Given that there were 53 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
Mr W Cox moved into a one bedroom flat in Henlow in May 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical homes in Henlow with a long lease were worth £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 22 February 2098. Considering the 73 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.