It’s a harsh certainty that a Henbury residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Henbury property market.Where your lease has approximately 90 years left, you need to start considering 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 falls under 80 years - otherwise a higher premium will be due. Most leasehold owners in Henbury will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Henbury with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Santander | |
| TSB | |
| The Mortgage Works |
Lease extensions in Henbury can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Henbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her purpose-built apartment in Henbury, Ashleigh commenced the lease extension process as the eighty year threshold was fast approaching. The transaction was finalised in April 2010. The landlord’s fees were restricted to less than 450 GBP.
Last Winter we were phoned by Mr Adam Evans , who moved into a first floor flat in Henbury in October 1999. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar homes in Henbury with an extended lease were in the region of £201,200. The average ground rent payable was £55 billed yearly. The lease ran out on 14 November 2082. Considering the 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.
Last Summer we were contacted by Dr Natasha García , who completed a studio apartment in Henbury in November 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Henbury with a long lease were valued about £300,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish on 16 January 2102. Taking into account 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.