It’s an underpublicised truth 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 not fully appreciated in the first few years due to the deflation being disguised by increases in the Langford property prices.Where your lease has approximately ninety years left, 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 dips below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Langford will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies 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 property. In such circumstances there is often little to be gained by purchasing the freehold 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a freeholder in Langford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Langford valuers.
During the course of the last few months Logan, came critically near to the eighty-year threshold with the lease on his one bedroom apartment in Langford. Having bought his flat twenty years previously, the length of the lease was of no bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Logan extended the lease just ahead of time in April. Logan and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the figure would have increased by a minimum £925.
Mrs V Nguyen owned a garden flat in Langford in March 2006. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Langford with 100 year plus lease were in the region of £256,600. The average ground rent payable was £60 collected yearly. The lease finished in 2078. Given that there were 52 years unexpired we estimated the premium to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of legals.
In 2012 we were called by Mr and Mrs. B Bailey who, having bought a ground floor flat in Langford in March 1997. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative homes in Langford with a long lease were worth £218,000. The mid-range ground rent payable was £45 collected annually. The lease lapsed on 2 October 2089. Having 63 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus costs.