The value of Huntingdon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than eighty years
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Using our service will provide you better control over the value of your Huntingdon leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold owner of a conversion flat in Huntingdon on the market with a lease of a little over 59 years unexpired. Ben on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were contacted by Ms Gemma Mason who, having acquired a ground floor flat in Huntingdon in November 1997. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable homes in Huntingdon with a long lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2098. Having 72 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Mr E Flores took over the lease of a one bedroom apartment in Huntingdon in October 2003. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Identical properties in Huntingdon with a long lease were valued about £233,200. The mid-range amount of ground rent was £60 billed annually. The lease finished on 28 May 2087. Given that there were 61 years remaining we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including professional charges.