Henbury leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Henbury will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Henbury with in excess of one hundred years left on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
The conveyancers 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.
Caleb was the the leasehold proprietor of a 2 bedroom flat in Henbury on the market with a lease of a little over 59 years left. Caleb informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2011 we were contacted by Dr U Michel who, having owned a garden flat in Henbury in March 2007. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Identical premises in Henbury with an extended lease were worth £240,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated in 2087. Taking into account 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
Last Spring we were called by Mr and Mrs. F Williams , who completed a purpose-built flat in Henbury in May 1995. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparable premises in Henbury with an extended lease were valued about £179,200. The mid-range amount of ground rent was £55 invoiced annually. The lease finished on 14 July 2076. Considering the 51 years remaining we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.