Henlow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Henlow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Henlow you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Henlow,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Henlow valuers.
Finn was the the leasehold proprietor of a 2 bedroom flat in Henlow on the market with a lease of just over 59 years outstanding. Finn on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2010 we were contacted by Dr T Robinson who, having moved into a ground floor flat in Henlow in August 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Henlow with a long lease were valued about £179,200. The average amount of ground rent was £55 billed every twelve months. The lease ran out on 19 February 2077. Given that there were 51 years left we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
In 2011 we were phoned by Mr and Mrs. E Sánchez who, having acquired a recently refurbished apartment in Henlow in January 2011. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Henlow with an extended lease were valued about £285,000. The average amount of ground rent was £45 billed annually. The lease ended in 2097. Having 71 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.