The closer a domestic lease in Kings Langley gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Kings Langley will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Kings Langley with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Kings Langley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kings Langley valuers.
In 2014 Zachary, came seriously near to the 80-year mark with the lease on his first floor apartment in Kings Langley. In buying his home 19 years previously, the length of the lease was of minimal importance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Zachary arranged for a lease extension at the eleventh hour last September. Zachary and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had dipped lower than eighty years, the sum would have increased by at least £1,100.
Last year we were called by Mr and Mrs. F Collins , who purchased a purpose-built flat in Kings Langley in January 1999. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Kings Langley with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced yearly. The lease lapsed on 15 January 2088. Considering the 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
In 2009 we were contacted by Mr Jackson Bailey who, having bought a one bedroom flat in Kings Langley in January 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Kings Langley with a long lease were in the region of £174,200. The average amount of ground rent was £55 billed yearly. The lease expired on 5 August 2077. Considering the 51 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.