The market value of a leasehold property in Langham depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation entitles Langham qualifying lessees to an additional term of ninety years on top of the remaining term, at a nominal rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Langham with in excess of one hundred years left on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Langham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Langham valuers.
Subsequent to lengthy negotiations with the landlord of her leasehold apartment in Langham, Millie commenced the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction completed in October 2007. The landlord’s costs were restricted to approximately 450 pounds.
Mr and Mrs. U Mason bought a studio flat in Langham in January 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable homes in Langham with a long lease were worth £227,800. The average ground rent payable was £45 collected every twelve months. The lease expired on 27 January 2090. Considering the 65 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
In 2010 we were approached by Mr and Mrs. H Davies who, having took over the lease of a purpose-built apartment in Langham in November 2004. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Langham with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 invoiced quarterly. The lease lapsed in 2101. Having 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.