Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Abbots Langley. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Abbots Langley have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give due deliberation before delaying your Abbots Langley lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Abbots Langley with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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.
Trailing protracted negotiations with the landlord of her purpose-built flat in Abbots Langley, Rosie initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The transaction was finalised in July 2007. The freeholder’s fees were restricted to slightly above four hundred pounds.
In 2010 we were contacted by Dr Ryan White who, having bought a purpose-built flat in Abbots Langley in March 2008. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Abbots Langley with an extended lease were in the region of £275,000. The average ground rent payable was £65 collected yearly. The lease came to a finish in 2094. Taking into account 68 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Autumn we were called by Dr Sebastian Sharif , who completed a basement apartment in Abbots Langley in March 2010. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Abbots Langley with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 2 May 2083. Given that there were 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.