For anyone whose Huntingdon property is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Huntingdon with more than 100 years outstanding on the lease are often 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 upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Huntingdon can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Huntingdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Hugo, started to get near to the 80-year threshold with the lease on his one bedroom flat in Huntingdon. In buying his home two decades ago, the lease term was of minimal relevance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Hugo extended the lease just in the nick of time in July. Hugo and the freeholder via the management company ultimately settled on a premium of £5,000 . If the lease had descended lower than eighty years, the price would have gone up by at least £975.
Last Christmas we were approach by Mr and Mrs. A Allen , who owned a one bedroom flat in Huntingdon in July 2005. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar properties in Huntingdon with an extended lease were in the region of £205,000. The average ground rent payable was £50 collected monthly. The lease termination date was on 17 January 2104. Having 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Ms Jennifer Kelly purchased a first floor flat in Huntingdon in May 2007. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar residencies in Huntingdon with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished in 2093. Having 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.