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 extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Huntingdon with more than one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Huntingdon,the lease extension solicitors 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.
Last Autumn Arthur, started to get near to the 80-year mark with the lease on his first floor flat in Huntingdon. In buying his flat two decades ago, the unexpired term was of little concern. Thankfully, he noticed he needed to take steps soon on a lease extension. Arthur arranged for a lease extension just in the nick of time in September. Arthur and the landlord in the end agreed on an amount of £5,500 . If the lease had slid to less than 80 years, the premium would have escalated by a minimum £1,000.
Dr H Rose owned a studio apartment in Huntingdon in August 1997. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative premises in Huntingdon with an extended lease were worth £210,000. The average ground rent payable was £50 billed monthly. The lease ran out on 25 November 2106. Having 80 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
In 2010 we were approached by Dr Jodie Patel who, having completed a one bedroom flat in Huntingdon in March 1995. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable premises in Huntingdon with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2095. Considering the 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.