There is no doubt about it a leasehold flat or house in Huntingdon is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Huntingdon will qualify for this right; that being said a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Huntingdon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After lengthy discussions with the landlord of her one bedroom apartment in Huntingdon, Erin started the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in June 2014. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. R Edwards acquired a basement flat in Huntingdon in September 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar homes in Huntingdon with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected quarterly. The lease ended in 2092. Taking into account 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.
Last year we were approach by Mrs Erin Watson , who purchased a one bedroom apartment in Huntingdon in June 2005. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparative residencies in Huntingdon with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected monthly. The lease terminated on 9 January 2081. Having 55 years remaining we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.