The only way is down when it comes to Lunt lease terms. Lunt leaseholds that have a residual term lower than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Lunt leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Owen, started to get close to the eighty-year mark with the lease on his first floor flat in Lunt. Having purchased his home two decades ago, the lease term was of no relevance. Fortunately, he realised he would soon be paying way over the odds for a lease extension. Owen was able to extend his lease just in the nick of time in September. Owen and the freeholder subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £1,150.
Ms S Baker completed a first floor flat in Lunt in September 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Lunt with a long lease were worth £168,800. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish on 10 October 2081. Having 55 years outstanding we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.
In 2009 we were phoned by Mr and Mrs. O Wilson who, having purchased a ground floor apartment in Lunt in September 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable residencies in Lunt with an extended lease were in the region of £235,200. The average ground rent payable was £45 billed yearly. The lease elapsed in 2092. Having 66 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.