The market value of a leasehold property in Henlow depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised in advance of the 80 year cut off point. Statute enables Henlow qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Henlow,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Henlow valuers.
During the course of the last few months Harry, started to get near to the 80-year mark with the lease on his first floor apartment in Henlow. Having bought his property two decades ago, the length of the lease was of minimal bearing. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Harry was able to extend his lease just ahead of time last June. Harry and the landlord ultimately agreed on a premium of £5,000 . If the lease had descended to less than 80 years, the amount would have increased by at least £1,000.
Dr Arthur Lewis owned a first floor flat in Henlow in July 2005. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Henlow with a long lease were in the region of £206,200. The average ground rent payable was £60 invoiced yearly. The lease termination date was in 2082. Taking into account 56 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
In 2011 we were e-mailed by Ms Rhiannon Morgan who, having completed a one bedroom flat in Henlow in January 2005. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical homes in Henlow with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced yearly. The lease finished on 7 March 2102. Taking into account 76 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.