Henlow leases on residential properties are gradually decreasing in 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. Legislation has been in place for sometime now allowing qualifying Henlow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Henlow you must check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Henlow flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Henlow leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her garden flat in Henlow, Yasmin commenced the lease extension process as the eighty year mark was quickly coming. The transaction was finalised in January 2005. The freeholder’s fees were negotiated to a tad over 650 GBP.
Last year we were approach by Ms Molly Michel , who took over the lease of a one bedroom apartment in Henlow in November 1997. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Henlow with 100 year plus lease were in the region of £248,000. The mid-range ground rent payable was £65 collected monthly. The lease ended in 2089. Taking into account 63 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of fees.
Last Winter we were approach by Mr and Mrs. B Thompson , who moved into a basement flat in Henlow in August 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Similar properties in Henlow with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed yearly. The lease finished in 2078. Having 52 years left we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.