The only way is down when it comes to Langford lease terms. Langford leaseholds that have a residual term shorter than 80 years will reduce in market price even faster, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| 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. |
Retaining our service gives you increased control over the value of your Langford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the landlord of her studio apartment in Langford, Olivia initiated the lease extension process as the 80 year threshold was fast advancing. The lease extension was concluded in October 2009. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. N White , who bought a one bedroom flat in Langford in June 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Langford with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 billed every twelve months. The lease came to a finish in 2076. Given that there were 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of expenses.
Last Winter we were contacted by Mrs W Moore , who moved into a basement flat in Langford in July 2004. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar residencies in Langford with 100 year plus lease were in the region of £208,200. The average ground rent payable was £65 billed yearly. The lease expired in 2087. Given that there were 61 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including fees.