Unfortunately that a Langford residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Langford property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Langford will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Langford with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Langford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her first floor flat in Langford, Shannon initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction completed in April 2013. The freeholder’s charges were negotiated to a tad over 600 pounds.
Mr Arthur Morgan moved into a purpose-built flat in Langford in March 1997. The question was if we could approximate the price could be for a 90 year lease extension. Comparable premises in Langford with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced monthly. The lease lapsed in 2095. Given that there were 70 years outstanding we calculated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 plus costs.
In 2012 we were called by Mr and Mrs. G Morris who, having purchased a basement apartment in Langford in April 1995. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable homes in Langford with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2075. Taking into account 50 years unexpired we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including expenses.