Luton leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Leasehold owners in Luton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Luton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Luton valuers.
Max was the the leasehold proprietor of a studio flat in Luton on the market with a lease of a little over 61 years unexpired. Max on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. L James who, having purchased a ground floor flat in Luton in May 1995. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparable premises in Luton with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed on 26 April 2094. Having 69 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Dr V Kelly purchased a studio apartment in Luton in January 2001. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Luton with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 11 March 2105. Considering the 80 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.