The market value of Huntingdon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
Leasehold residencies in Huntingdon with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Huntingdon can be a difficult process. We recommend you obtain 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 in-depth market knowledge 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.
During the course of the last few months Dylan, started to get near to the eighty-year threshold with the lease on his first floor apartment in Huntingdon. In buying his flat two decades ago, the unexpired term was of minimal significance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Dylan was able to extend his lease just under the wire last September. Dylan and the landlord ultimately agreed on a premium of £5,500 . If the lease had fallen lower than 80 years, the price would have escalated by a minimum £1,000.
In 2010 we were contacted by Ms Sophie Martinez who, having acquired a basement apartment in Huntingdon in October 2004. We are asked if we could estimate the price would be for a 90 year lease extension. Identical residencies in Huntingdon with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 billed every twelve months. The lease ended in 2102. Given that there were 76 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last Christmas we were e-mailed by Mr and Mrs. B Khan , who owned a ground floor flat in Huntingdon in January 2008. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Identical properties in Huntingdon with a long lease were worth £257,800. The average ground rent payable was £65 collected quarterly. The lease lapsed on 1 May 2091. Taking into account 65 years remaining we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus professional charges.