Top reasons for Henlow lease extension

Why you should start your Henlow lease extension today:

A Henlow lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Henlow depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised prior to the 80 year cut off point. Current legislation enables Henlow qualifying lessees to an additional term of ninety years over and above the existing term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Henlow property with a lease extension has roughly the same value as a freehold

Leasehold premises in Henlow with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not grant a mortgage with a short lease

Banks and building societies do not like short residential leases. You most probably experience difficulties where you want to sell your flat in Henlow if the remaining term of your lease is below the criteria set by the majority of banks and building societies. Different lenders have different criteria but generally theyrequire an unexpired term of at least seventy years.

Why use us for your lease extension in Henlow?

Regardless of whether you are a tenant or a landlord in Henlow,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Henlow valuers.

Henlow Lease Extension Case Summaries:

Sarah, Henlow, Bedfordshire,

Off the back of lengthy discussions with the landlord of her garden apartment in Henlow, Sarah commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was concluded in May 2008. The landlord’s charges were kept to an absolute minimum.

Henlow case:

Mr and Mrs. O Wood purchased a recently refurbished apartment in Henlow in January 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Henlow with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 collected per annum. The lease ended in 2101. Having 75 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.

Henlow case:

Mr and Mrs. H Rodríguez acquired a purpose-built flat in Henlow in August 2007. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparative residencies in Henlow with an extended lease were worth £250,400. The average ground rent payable was £65 billed per annum. The lease elapsed in 2090. Considering the 64 years remaining we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.