Unfortunately that a Henbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Henbury property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Henbury will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Henbury with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Henbury valuers.
Twenty four months ago Freddie, came very close to the 80-year threshold with the lease on his purpose- built apartment in Henbury. In buying his property twenty years previously, the unexpired term was of little significance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Freddie arranged for a lease extension at the eleventh hour last June. Freddie and the landlord subsequently agreed on an amount of £5,000 . If the lease had dipped to less than eighty years, the price would have become more costly by a minimum £1,050.
Last Winter we were contacted by Mr and Mrs. R Ali , who acquired a purpose-built apartment in Henbury in August 2010. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Henbury with a long lease were in the region of £198,800. The average ground rent payable was £55 collected monthly. The lease lapsed in 2081. Given that there were 55 years left we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Last Spring we were e-mailed by Ms U James , who took over the lease of a first floor flat in Henbury in May 2005. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative residencies in Henbury with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease termination date was in 2101. Considering the 75 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.