Unfortunately that a Abbots Langley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Abbots Langley property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Abbots Langley will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Abbots Langley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After lengthy negotiations with the freeholder of her purpose-built apartment in Abbots Langley, Bethany commenced the lease extension process as the eighty year mark was quickly nearing. The legal work completed in April 2008. The landlord’s charges were negotiated to a tad over 600 pounds.
Last Summer we were contacted by Mr Y Ali , who moved into a first floor apartment in Abbots Langley in November 1997. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Abbots Langley with an extended lease were worth £174,200. The mid-range ground rent payable was £55 collected monthly. The lease expired in 2077. Considering the 51 years outstanding we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
In 2014 we were e-mailed by Mrs Catherine Jackson who, having took over the lease of a ground floor flat in Abbots Langley in April 2000. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable homes in Abbots Langley with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expired on 14 August 2097. Having 71 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.