Henlow leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Henlow enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Henlow you should 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 left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Henlow with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Henlow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following protracted negotiations with the landlord of her first floor apartment in Henlow, Leah initiated the lease extension process as the eighty year threshold was swiftly advancing. The legal work was finalised in April 2008. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Mr Luke Clark who, having completed a garden apartment in Henlow in January 2007. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar flats in Henlow with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced yearly. The lease expired in 2085. Considering the 59 years remaining we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including expenses.
Last Winter we were phoned by Mr A López , who moved into a one bedroom apartment in Henlow in May 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Henlow with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced monthly. The lease ended in 2105. Having 79 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.