With a residential leasehold premises in Langley, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Anyone in Langley with a lease nearing 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the relevant statute the landlord can calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Langley with over 100 years remaining on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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 freeholder in Langley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Langley valuers.
George owned a studio apartment in Langley on the market with a lease of a few days over sixty years outstanding. George informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were George to invoke his statutory right. George procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2011 we were called by Mr and Mrs. K Baker who, having bought a one bedroom flat in Langley in October 2003. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Langley with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected yearly. The lease ran out in 2084. Considering the 60 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus costs.
An example of a Freehold Enfranchisement decision for a Langley premises is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The remaining number of years on the lease was 69 years.