The market value of Henlow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Henlow can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 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.
In recent months Henry, came precariously near to the eighty-year mark with the lease on his two bedroom flat in Henlow. In buying his home two decades ago, the unexpired term was of minimal relevance. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Henry was able to extend his lease at the eleventh hour in May. Henry and the landlord subsequently settled on sum of £5,000 . If he not met the deadline, the premium would have become more costly by at least £1,125.
Last Spring we were contacted by Mr and Mrs. F Fournier , who owned a ground floor flat in Henlow in April 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar homes in Henlow with an extended lease were worth £280,000. The average ground rent payable was £45 billed yearly. The lease finished on 23 November 2096. Given that there were 70 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last Winter we were called by Mr Kyle Simon , who bought a one bedroom apartment in Henlow in August 1995. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Henlow with an extended lease were in the region of £223,400. The average ground rent payable was £60 billed per annum. The lease end date was on 6 June 2085. Given that there were 59 years remaining we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including expenses.