When it comes to residential leasehold property in Kings Langley, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Kings Langley with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Kings Langley with over one hundred years left on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Kings Langley can be a difficult process. We recommend you procure guidance 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 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.
Last October Samuel, started to get near to the 80-year threshold with the lease on his purpose- built flat in Kings Langley. Having purchased his flat two decades ago, the length of the lease was of minimal interest. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Samuel extended the lease just in the nick of time in July. Samuel and the freeholder ultimately agreed on a premium of £5,500 . If he not met the deadline, the amount would have gone up by a minimum £1,075.
Last Spring we were called by Dr C Ricardo , who was assigned a lease of a one bedroom apartment in Kings Langley in September 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Kings Langley with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated in 2101. Considering the 76 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Mr I Roberts took over the lease of a first floor apartment in Kings Langley in September 2012. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Kings Langley with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2090. Having 65 years remaining we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus expenses.