Henbury leases on residential properties are gradually decreasing in 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 Henbury enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Henbury you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Henbury,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 Henbury valuers.
In the wake of eight months of protracted negotiations with the landlord of her leasehold flat in Henbury, Alicia started the lease extension process as the 80 year threshold was quickly nearing. The lease extension completed in February 2008. The freeholder’s fees were negotiated to slightly above 600 GBP.
Last Summer we were e-mailed by Mr Kian Martinez , who moved into a studio flat in Henbury in June 2012. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Henbury with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected yearly. The lease finished in 2077. Given that there were 52 years unexpired we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.
Last Spring we were approach by Dr B Vincent , who was assigned a lease of a ground floor apartment in Henbury in May 2010. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar properties in Henbury with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease expired in 2097. Considering the 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including fees.