The market value of a leasehold property in Henbury is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed in advance of the eighty year cut off point. Current legislation enables Henbury qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Henbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a studio flat in Henbury being marketed with a lease of a few days over 72 years unexpired. Luke informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. Y Martínez took over the lease of a recently refurbished flat in Henbury in January 2001. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable residencies in Henbury with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease elapsed on 11 November 2097. Given that there were 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last year we were phoned by Dr O Michel , who owned a recently refurbished apartment in Henbury in April 2004. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable residencies in Henbury with an extended lease were worth £240,600. The mid-range ground rent payable was £65 invoiced annually. The lease ran out in 2086. Taking into account 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.