Unfortunately that a Langford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Langford property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Langford will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Langford with in excess of one hundred years left on the lease are often referred to as ‘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 purchasing the reversionary interest 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 2014 Dexter, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Langford. Having purchased his home two decades ago, the length of the lease was of little interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Dexter arranged for a lease extension at the eleventh hour in April. Dexter and the freeholder via the management company eventually agreed on a premium of £5,500 . If he not met the deadline, the price would have increased by a minimum £975.
Last August we were approach by Mr and Mrs. Y Howard , who acquired a first floor flat in Langford in February 1996. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Langford with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2104. Having 79 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.
Mr and Mrs. B Wright owned a first floor apartment in Langford in September 2012. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Langford with an extended lease were worth £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease termination date was on 11 June 2084. Having 59 years outstanding we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.