Chances are that if you own a flat in Huntingdon you actually own a long leasehold interest over your property
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 property will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Huntingdon can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Huntingdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a high value apartment in Huntingdon being sold with a lease of just over 59 years remaining. Felix on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were approached by Mrs B Martínez who, having owned a first floor flat in Huntingdon in November 2012. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative properties in Huntingdon with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2078. Considering the 52 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.
Mr Daniel Gray took over the lease of a newly refurbished apartment in Huntingdon in June 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Huntingdon with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced yearly. The lease lapsed in 2098. Having 72 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.