Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Luton. Clearly, the length of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Luton have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give due attention before delaying your Luton lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Luton with over 100 years remaining 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Luton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Thomas, started to get near to the 80-year mark with the lease on his garden flat in Luton. Having bought his flat two decades ago, the unexpired term was of no importance. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Thomas was able to extend his lease just under the wire in April. Thomas and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £850.
Last Summer we were phoned by Dr Olivia Martin , who completed a newly refurbished apartment in Luton in October 2007. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Luton with a long lease were worth £220,400. The mid-range ground rent payable was £45 billed annually. The lease finished in 2088. Having 64 years left we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of legals.
Dr J Miller completed a newly refurbished apartment in Luton in April 2010. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Luton with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease finished on 5 April 2099. Taking into account 75 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.