On the balance of probabilities if you own a flat in Luton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Luton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Luton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the freeholder of her garden flat in Luton, Lily started the lease extension process as the 80 year mark was rapidly advancing. The legal work completed in July 2014. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. E Richardson was assigned a lease of a basement apartment in Luton in February 2006. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical flats in Luton with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 collected quarterly. The lease elapsed on 12 August 2102. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Mrs Rachael Wright moved into a garden apartment in Luton in March 2005. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Luton with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 billed monthly. The lease concluded on 14 August 2082. Considering the 56 years unexpired we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus fees.