The market value of a leasehold property in Luton depends on how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be concluded well before the eighty year cut off point. Leasehold Reform legislation enables Luton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Using our service gives you enhanced control over the value of your Luton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months James, started to get near to the 80-year threshold with the lease on his first floor apartment in Luton. Having purchased his flat twenty years ago, the unexpired term was of no bearing. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. James extended the lease just in the nick of time in March. James and the freeholder via the managing agents ultimately settled on sum of £6,000 . If he not met the deadline, the sum would have increased by a minimum £975.
Dr W Gómez took over the lease of a purpose-built apartment in Luton in July 2011. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable premises in Luton with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 collected quarterly. The lease termination date was in 2080. Considering the 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.
Mr and Mrs. E Green completed a recently refurbished apartment in Luton in May 2011. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Luton with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 26 March 2091. Considering the 66 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.