Henbury leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be due. Leasehold owners in Henbury will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Henbury with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Henbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jamie was the the leasehold owner of a conversion apartment in Henbury being marketed with a lease of a few days over 59 years left. Jamie informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Autumn we were approach by Dr Owen Moore , who acquired a ground floor apartment in Henbury in May 1998. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Similar premises in Henbury with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease concluded on 7 September 2093. Taking into account 68 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
In 2012 we were contacted by Mr and Mrs. P Mitchell who, having acquired a purpose-built flat in Henbury in January 1995. We are asked if we could approximate the price could be for a ninety year lease extension. Similar flats in Henbury with a long lease were worth £213,600. The average ground rent payable was £60 invoiced annually. The lease elapsed on 18 October 2082. Given that there were 57 years outstanding we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.