Chances are that where you own a flat in Abbots Langley you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| Yorkshire Building Society | 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. |
The lawyers that we work with undertake 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.
Two years ago Toby, came very near to the 80-year mark with the lease on his leasehold flat in Abbots Langley. Having bought his flat two decades ago, the length of the lease was of no bearing. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Toby extended the lease just under the wire last January. Toby and the freeholder via the managing agents ultimately agreed on a premium of £6,000 . If the lease had gone lower than eighty years, the figure would have increased by a minimum £950.
Last Christmas we were contacted by Mr Samuel Morgan , who took over the lease of a first floor flat in Abbots Langley in July 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable residencies in Abbots Langley with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2105. Having 80 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. R Nguyen purchased a purpose-built flat in Abbots Langley in May 2005. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Abbots Langley with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected quarterly. The lease ended on 8 November 2094. Having 69 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.