On the balance of probabilities where you own a flat in Kings Langley you actually own a long leasehold interest over your property
Leasehold properties in Kings Langley with more than one hundred 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Kings Langley can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience procuring Kings Langley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a 2 bedroom apartment in Kings Langley on the market with a lease of a few days over fifty eight years left. Milo informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last Winter we were e-mailed by Mr and Mrs. J Allen , who moved into a one bedroom flat in Kings Langley in September 1999. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Kings Langley with an extended lease were worth £174,200. The mid-range ground rent payable was £55 billed monthly. The lease end date was on 12 February 2077. Given that there were 51 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
Last Autumn we were e-mailed by Mr and Mrs. V Gray , who purchased a purpose-built flat in Kings Langley in November 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Kings Langley with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 12 May 2097. Taking into account 71 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.