Henbury leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required 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 additional value that a lease extension will add to the property. Leasehold owners in Henbury will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Henbury with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
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.
Finley was the the leasehold owner of a studio flat in Henbury being marketed with a lease of just over fifty eight years unexpired. Finley on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Finley to exercise his statutory right. Finley procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2010 we were phoned by Dr John Nelson who, having acquired a basement flat in Henbury in August 2002. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative residencies in Henbury with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 invoiced annually. The lease end date was on 12 February 2101. Given that there were 75 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2011 we were phoned by Dr K Laurent who, having was assigned a lease of a recently refurbished flat in Henbury in February 1996. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Henbury with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected every twelve months. The lease expired on 6 October 2090. Having 64 years unexpired we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.