Unfortunately that a Huntingdon residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Huntingdon property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Huntingdon will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Huntingdon with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Huntingdon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luca, came precariously near to the eighty-year threshold with the lease on his garden apartment in Huntingdon. Having purchased his flat two decades ago, the length of the lease was of little significance. As luck would have it, he became aware that he would soon be paying an escalated premium for a lease extension. Luca arranged for a lease extension just under the wire last May. Luca and the freeholder eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the amount would have escalated by at least £900.
Dr Mollie Taylor bought a ground floor apartment in Huntingdon in April 1997. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative residencies in Huntingdon with 100 year plus lease were worth £240,600. The average ground rent payable was £60 billed monthly. The lease end date was on 24 August 2087. Having 62 years remaining we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
Last Summer we were called by Dr V Hernández , who owned a recently refurbished apartment in Huntingdon in November 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical homes in Huntingdon with a long lease were valued around £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease expired in 2076. Considering the 51 years remaining we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.