The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Luton have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Luton lease extension. Shelving the costs now simply increases the premium you will eventually be required to pay for a lease extension.
Leasehold residencies in Luton with over one hundred years unexpired on the lease are sometimes regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Luton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Off the back of protracted correspondence with the landlord of her leasehold flat in Luton, Mia commenced the lease extension process as the eighty year threshold was quickly approaching. The transaction was concluded in May 2005. The landlord’s costs were restricted to a tad over 550 GBP.
In 2009 we were e-mailed by Mr and Mrs. W Turner who, having owned a recently refurbished apartment in Luton in January 2007. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar flats in Luton with an extended lease were valued around £265,000. The average amount of ground rent was £50 invoiced yearly. The lease finished in 2099. Considering the 74 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last Spring we were e-mailed by Mr and Mrs. P François , who purchased a studio flat in Luton in July 1995. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Identical flats in Luton with a long lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease concluded in 2079. Having 54 years remaining we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus expenses.