Abbots Langley leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Abbots Langley will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Abbots Langley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Abbots Langley valuers.
Last Autumn Oliver, started to get near to the eighty-year mark with the lease on his basement apartment in Abbots Langley. In buying his home two decades ago, the unexpired term was of little significance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Oliver arranged for a lease extension just ahead of time in May. Oliver and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had dropped lower than eighty years, the figure would have increased by at least £1,150.
In 2009 we were called by Ms Victoria Morris who, having moved into a first floor apartment in Abbots Langley in August 2011. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Abbots Langley with a long lease were in the region of £265,200. The average amount of ground rent was £65 collected every twelve months. The lease terminated in 2092. Given that there were 66 years unexpired we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of fees.
Dr Charlotte Bennett bought a one bedroom flat in Abbots Langley in August 1997. The question was if we could approximate the price would be for a 90 year lease extension. Identical flats in Abbots Langley with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2081. Given that there were 55 years unexpired we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.