The nearer a residential lease in Henlow gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Henlow will qualify for this right; nevertheless a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you better control over the value of your Henlow leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb owned a conversion apartment in Henlow being sold with a lease of a little over sixty years unexpired. Caleb informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last Summer we were e-mailed by Mr and Mrs. G Morgan , who moved into a purpose-built flat in Henlow in August 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative residencies in Henlow with a long lease were worth £290,000. The average ground rent payable was £45 invoiced monthly. The lease elapsed in 2098. Considering the 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.
In 2012 we were e-mailed by Dr D Lefèvre who, having was assigned a lease of a one bedroom apartment in Henlow in July 2008. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in Henlow with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired on 8 May 2087. Having 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including professional charges.