It’s a harsh truth that a Langford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Langford property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Langford will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Langford with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Nathan was the the leasehold owner of a high value apartment in Langford being marketed with a lease of fraction over 59 years left. Nathan informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2009 we were approached by Mr Ryan Lefèvre who, having completed a purpose-built flat in Langford in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Langford with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced annually. The lease concluded on 20 September 2101. Having 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Dr F García bought a one bedroom apartment in Langford in March 2004. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable homes in Langford with a long lease were worth £168,800. The average amount of ground rent was £60 invoiced yearly. The lease expiry date was on 10 May 2081. Having 55 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.