There is no doubt about it a leasehold flat or house in Abbots Langley is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Many flat owners in Abbots Langley will meet the qualifying criteria; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| The Mortgage Works | |
| Virgin |
The lawyers 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 conveyancing solicitor we work with provide it.
Two years ago Jayden, came critically close to the 80-year mark with the lease on his studio apartment in Abbots Langley. Having bought his home twenty years ago, the lease term was of minimal relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Jayden arranged for a lease extension at the eleventh hour last June. Jayden and the landlord in the end agreed on a premium of £5,500 . If the lease had gone lower than eighty years, the figure would have gone up by at least £950.
Mr T Robinson owned a basement apartment in Abbots Langley in February 2011. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical premises in Abbots Langley with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 18 April 2101. Given that there were 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
In 2010 we were approached by Mrs W Jackson who, having took over the lease of a studio flat in Abbots Langley in September 1996. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Abbots Langley with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2090. Having 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.