Kings Langley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Kings Langley tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Kings Langley you should investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Kings Langley leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 undertake Kings 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 Theo, came very close to the 80-year mark with the lease on his purpose- built apartment in Kings Langley. In buying his home 18 years ago, the lease term was of little significance. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Theo was able to extend his lease just in the nick of time in May. Theo and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the price would have escalated by at least £875.
Mr S Cook acquired a one bedroom apartment in Kings Langley in October 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in Kings Langley with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 invoiced monthly. The lease ran out in 2089. Considering the 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including costs.
Dr I Dupont took over the lease of a garden apartment in Kings Langley in February 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Kings Langley with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2078. Taking into account 53 years outstanding we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.