With a domestic leasehold premises in Henlow, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years remaining. Residents in Henlow with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB |
Regardless of whether you are a tenant or a landlord in Henlow,the lease extension lawyers 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.
Eliot owned a conversion flat in Henlow being sold with a lease of a little over 61 years unexpired. Eliot on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Last Christmas we were e-mailed by Dr Oscar Martínez , who completed a ground floor flat in Henlow in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Henlow with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2097. Taking into account 71 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2013 we were approached by Mrs P Brooks who, having moved into a first floor flat in Henlow in November 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Henlow with 100 year plus lease were in the region of £230,800. The average ground rent payable was £60 collected annually. The lease lapsed in 2086. Having 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including legals.