Henbury leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Henbury will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB |
Retaining our service gives you increased control over the value of your Henbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold proprietor of a conversion apartment in Henbury on the market with a lease of a few days over 72 years left. Mason on an informal basis spoke with his freeholder 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 subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last June we were e-mailed by Ms Molly Morris , who owned a first floor apartment in Henbury in January 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Henbury with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 invoiced per annum. The lease expired on 20 November 2086. Given that there were 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £25,700 and £29,600 exclusive of professional charges.
Last month we were contacted by Dr I Roux , who was assigned a lease of a purpose-built apartment in Henbury in April 1999. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable flats in Henbury with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed on 23 November 2106. Taking into account 80 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.