Henlow leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Henlow will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service will provide you better control over the value of your Henlow leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Aiden, came precariously close to the eighty-year mark with the lease on his purpose- built flat in Henlow. In buying his flat two decades ago, the lease term was of little concern. Luckily, he became aware that he would imminently be paying an escalated premium for Extending the lease. Aiden arranged for a lease extension at the eleventh hour in July. Aiden and the freeholder in the end agreed on an amount of £5,000 . If the lease had slid below 80 years, the amount would have gone up by a minimum £1,075.
Dr Louise Martin took over the lease of a garden apartment in Henlow in March 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative homes in Henlow with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed annually. The lease finished in 2075. Given that there were 50 years unexpired we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Mr Hunter Collins acquired a studio flat in Henlow in May 2005. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar properties in Henlow with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease termination date was on 12 April 2095. Considering the 70 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.