When it comes to residential leasehold property in Henlow, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Residents in Henlow with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has under 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 professional help from a conveyancer 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 in-depth market knowledge 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 Autumn Matthew, came perilously near to the 80-year mark with the lease on his ground floor apartment in Henlow. Having bought his property two decades ago, the unexpired term was of no relevance. Thankfully, he recognised he needed to take steps soon on a lease extension. Matthew extended the lease just in the nick of time last July. Matthew and the freeholder via the management company ultimately settled on the final figure of £5,000 . If the lease had dropped lower than eighty years, the figure would have gone up by a minimum £850.
Last Winter we were e-mailed by Mr N Mason , who was assigned a lease of a newly refurbished apartment in Henlow in July 2006. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative homes in Henlow with a long lease were valued about £205,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed in 2104. Taking into account 78 years remaining we approximated the premium to the landlord to extend the lease to be between £7,600 and £8,800 not including costs.
Mr and Mrs. K Howard moved into a purpose-built apartment in Henlow in May 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Henlow with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 8 January 2093. Considering the 67 years outstanding we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of expenses.