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 gets 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 would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Henlow,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Henlow valuers.
Jayden owned a high value apartment in Henlow on the market with a lease of a little over 61 years remaining. Jayden on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Last Winter we were called by Mr Felix Cooper , who bought a studio flat in Henlow in January 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Henlow with 100 year plus lease were in the region of £240,600. The mid-range amount of ground rent was £65 collected per annum. The lease ended in 2088. Given that there were 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Mr John Flores bought a first floor flat in Henlow in May 2003. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable properties in Henlow with a long lease were valued around £179,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ran out in 2077. Having 51 years unexpired we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.