Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Huntingdon. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Huntingdon have the right to extend the lease for a further 90 years under legislation. Please give due attention before delaying your Huntingdon lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Huntingdon with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with undertake 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.
Andrew owned a conversion flat in Huntingdon being marketed with a lease of a little over 59 years unexpired. Andrew informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. M Martínez moved into a ground floor flat in Huntingdon in October 2004. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Huntingdon with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected yearly. The lease came to a finish on 13 May 2087. Given that there were 61 years left we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus legals.
Last January we were e-mailed by Dr Jake Bertrand , who moved into a garden apartment in Huntingdon in October 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Huntingdon with an extended lease were valued about £171,800. The average amount of ground rent was £55 billed annually. The lease came to a finish in 2076. Taking into account 50 years left we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.