Henbury leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half 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 mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Henbury with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Henbury,the lease extension lawyers that we work with will always be prepared 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 lengthy negotiations with the freeholder of her two bedroom flat in Henbury, Millie initiated the lease extension process as the eighty year deadline was fast coming. The transaction was finalised in May 2015. The freeholder’s charges were kept to an absolute minimum.
Dr Jacob Lefèvre took over the lease of a one bedroom apartment in Henbury in July 2005. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Henbury with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease expiry date was in 2089. Taking into account 64 years left we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.
Last Autumn we were phoned by Ms F Bennett , who bought a newly refurbished apartment in Henbury in July 2008. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparative premises in Henbury with an extended lease were valued around £189,000. The mid-range ground rent payable was £55 collected per annum. The lease concluded on 14 June 2078. Given that there were 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.