Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Henlow. Clearly, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Henlow have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give due deliberation before delaying your Henlow lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold properties in Henlow with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Henlow can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Henlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her two bedroom apartment in Henlow, Robyn started the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was concluded in April 2013. The landlord’s charges were restricted to below four hundred GBP.
Last June we were called by Mr and Mrs. H Ramírez , who acquired a purpose-built apartment in Henlow in April 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Identical flats in Henlow with 100 year plus lease were valued about £196,400. The mid-range ground rent payable was £55 collected yearly. The lease finished on 9 October 2079. Having 54 years unexpired we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus fees.
Last April we were contacted by Dr D King , who purchased a basement apartment in Henlow in June 2010. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative residencies in Henlow with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 13 March 2099. Having 74 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.