Abbots Langley leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease falls under 80 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 cases you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| 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 conveyancers that we work with handle 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 conveyancer we work with provide it.
In the wake of 6 months of lengthy negotiations with the landlord of her purpose-built flat in Abbots Langley, Isabella initiated the lease extension process as the 80 year deadline was rapidly advancing. The transaction was concluded in March 2009. The landlord’s charges were negotiated to under 650 GBP.
Last Autumn we were e-mailed by Mr and Mrs. G David , who acquired a garden flat in Abbots Langley in March 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable homes in Abbots Langley with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 billed annually. The lease expired in 2104. Given that there were 78 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Dr Reuben Roux acquired a basement apartment in Abbots Langley in February 1995. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Abbots Langley with a long lease were worth £267,600. The average amount of ground rent was £65 billed annually. The lease expired on 16 February 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.