When it comes to domestic leasehold property in Langford, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Langford with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Engaging our service will provide you better control over the value of your Langford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Reuben, started to get close to the 80-year mark with the lease on his studio apartment in Langford. In buying his flat two decades ago, the unexpired term was of little significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Reuben was able to extend his lease just under the wire last August. Reuben and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had slipped to less than 80 years, the price would have become more costly by at least £875.
In 2010 we were phoned by Mr and Mrs. F White who, having completed a one bedroom apartment in Langford in July 2001. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Langford with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed annually. The lease termination date was in 2084. Considering the 58 years unexpired we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
Dr Emily Walker was assigned a lease of a one bedroom flat in Langford in May 1997. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Langford with an extended lease were valued about £250,000. The average amount of ground rent was £50 billed per annum. The lease elapsed in 2095. Given that there were 69 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.