As the the remaining lease term of a Henbury residential lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Henbury will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Henbury with over one hundred years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Henbury,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Henbury valuers.
Following protracted correspondence with the freeholder of her garden flat in Henbury, Robyn initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was finalised in May 2005. The freeholder’s fees were negotiated to a tad over 450 GBP.
Mr and Mrs. V Morel bought a garden flat in Henbury in March 1999. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical properties in Henbury with 100 year plus lease were worth £233,200. The average ground rent payable was £60 invoiced annually. The lease expired on 28 February 2087. Considering the 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including costs.
Last month we were e-mailed by Dr I Williams , who acquired a ground floor flat in Henbury in October 2009. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Henbury with a long lease were worth £174,200. The average ground rent payable was £55 collected per annum. The lease ended on 17 March 2077. Given that there were 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.