Unfortunately that a Huntingdon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Huntingdon property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Huntingdon will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a landlord in Huntingdon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Huntingdon valuers.
Charlie owned a conversion flat in Huntingdon on the market with a lease of just over 59 years left. Charlie on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2014 we were contacted by Dr M González who, having took over the lease of a basement flat in Huntingdon in April 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Huntingdon with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 billed every twelve months. The lease ended on 20 January 2084. Given that there were 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.
In 2012 we were contacted by Mr Matthew González who, having purchased a first floor apartment in Huntingdon in January 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical homes in Huntingdon with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 collected annually. The lease end date was on 18 November 2104. Taking into account 78 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.