For anyone whose Huntingdon property is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 gives you better control over the value of your Huntingdon leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Zachary, started to get close to the 80-year threshold with the lease on his two bedroom flat in Huntingdon. Having bought his home 19 years previously, the length of the lease was of little bearing. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Zachary arranged for a lease extension just ahead of time in September. Zachary and the landlord in the end agreed on sum of £6,000 . If he had missed the deadline, the price would have escalated by at least £1,075.
In 2012 we were e-mailed by Dr P Watson who, having purchased a studio flat in Huntingdon in July 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Huntingdon with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 billed annually. The lease ran out in 2086. Considering the 60 years left we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of costs.
In 2009 we were approached by Dr Hollie Peterson who, having bought a garden flat in Huntingdon in February 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Huntingdon with an extended lease were valued around £210,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out in 2106. Considering the 80 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.