Abbots Langley leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Abbots Langley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Abbots Langley with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Abbots Langley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Abbots Langley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold proprietor of a conversion flat in Abbots Langley on the market with a lease of a little over fifty eight years left. Jake informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. H Hernández who, having completed a basement apartment in Abbots Langley in September 2005. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical residencies in Abbots Langley with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish on 18 April 2079. Taking into account 54 years outstanding we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.
In 2014 we were called by Mrs Aimee Parker who, having bought a ground floor flat in Abbots Langley in January 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Abbots Langley with a long lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease concluded on 20 September 2099. Having 74 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.