Lunt leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Lunt residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Lunt you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Lunt with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Engaging our service gives you better control over the value of your Lunt leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her two bedroom flat in Lunt, Paige started the lease extension process as the 80 year deadline was quickly coming. The legal work completed in November 2009. The landlord’s charges were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. M Bernard who, having was assigned a lease of a first floor flat in Lunt in September 1995. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Lunt with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease end date was in 2099. Considering the 74 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mrs Chantelle Ramírez moved into a garden apartment in Lunt in July 2003. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar premises in Lunt with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 billed yearly. The lease ended in 2079. Having 54 years left we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.