Langford leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Langford will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 conveyancing solicitors that we work with undertake Langford 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.
In the wake of eight months of lengthy correspondence with the freeholder of her one bedroom flat in Langford, Lily started the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work was concluded in May 2010. The landlord’s costs were restricted to under four hundred GBP.
In 2010 we were phoned by Dr Ashleigh Bernard who, having purchased a recently refurbished flat in Langford in September 1998. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Langford with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2095. Given that there were 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr J Watson completed a one bedroom apartment in Langford in July 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Langford with a long lease were worth £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease end date was in 2106. Given that there were 80 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.