When it comes to long leasehold property in Henlow, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Henlow with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Retaining 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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a studio apartment in Henlow on the market with a lease of fraction over 72 years outstanding. Elijah on an informal basis spoke with his freeholder being a well known local-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 an increased rent to £125 annually. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and secured an acceptable deal informally and sell the property.
In 2012 we were called by Mr and Mrs. K García who, having bought a studio apartment in Henlow in February 2012. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical homes in Henlow with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed in 2102. Having 77 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Christmas we were phoned by Mr and Mrs. I Phillips , who took over the lease of a purpose-built apartment in Henlow in July 1999. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar residencies in Henlow with an extended lease were worth £265,200. The average ground rent payable was £65 billed yearly. The lease lapsed in 2091. Taking into account 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus professional charges.