There is no doubt about it a leasehold flat or house in Henbury is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Henbury will meet the qualifying criteria; however a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Henbury can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge procuring Henbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her basement apartment in Henbury, Lucy started the lease extension process as the 80 year threshold was quickly advancing. The legal work completed in September 2008. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were approach by Dr J Leroy , who bought a one bedroom apartment in Henbury in January 1995. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Henbury with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish in 2104. Taking into account 78 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2010 we were approached by Mr and Mrs. F Ricardo who, having purchased a studio apartment in Henbury in May 2012. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar homes in Henbury with 100 year plus lease were worth £267,600. The average ground rent payable was £65 billed quarterly. The lease terminated on 14 April 2093. Given that there were 67 years remaining we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus costs.