As the the remaining lease term of a Kings Langley residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Kings Langley will meet the qualifying criteria; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Kings Langley with over one hundred years remaining 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 purchasing the reversionary interest 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; |
| 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 | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kings Langley can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 dealing with 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.
In the wake of eight months of protracted discussions with the freeholder of her leasehold apartment in Kings Langley, Alicia started the lease extension process as the 80 year deadline was quickly approaching. The lease extension was finalised in November 2011. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. E Evans who, having owned a studio apartment in Kings Langley in March 2010. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative residencies in Kings Langley with a long lease were valued around £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed on 25 July 2100. Given that there were 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2013 we were called by Dr Abigail Bertrand who, having owned a recently refurbished flat in Kings Langley in August 2002. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Kings Langley with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 billed monthly. The lease ran out in 2089. Having 63 years left we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.