Lunt leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Lunt enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lunt you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Lunt with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Lunt leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Austin, started to get close to the 80-year mark with the lease on his two bedroom flat in Lunt. In buying his property two decades ago, the unexpired term was of little interest. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Austin arranged for a lease extension just under the wire last August. Austin and the freeholder eventually agreed on the final figure of £6,000 . If the lease had descended lower than eighty years, the premium would have increased by a minimum £1,000.
In 2011 we were contacted by Dr V Taylor who, having purchased a ground floor flat in Lunt in May 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Lunt with a long lease were valued about £275,000. The average ground rent payable was £55 billed monthly. The lease concluded in 2102. Taking into account 77 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Last Spring we were called by Mr and Mrs. J Richardson , who was assigned a lease of a first floor apartment in Lunt in May 2002. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Lunt with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 collected per annum. The lease terminated on 19 April 2082. Taking into account 57 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.