Huntingdon residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Virgin |
Engaging our service will provide you better control over the value of your Huntingdon leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin was the the leasehold owner of a 2 bedroom flat in Huntingdon being marketed with a lease of fraction over fifty eight years unexpired. Austin on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2010 we were e-mailed by Ms K Martinez who, having purchased a garden flat in Huntingdon in August 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Huntingdon with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed in 2095. Having 69 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
Last year we were phoned by Ms V Evans , who completed a ground floor flat in Huntingdon in June 2004. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Huntingdon with an extended lease were valued about £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease end date was on 6 September 2084. Having 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.