With a long leasehold premises in Langford, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Langford with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than eighty years remaining, under the current Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Langford with in excess of 100 years outstanding on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Langford,the lease extension experts that we work with will always be prepared 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.
Jason owned a conversion flat in Langford on the market with a lease of a few days over sixty years left. Jason on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2010 we were called by Mr and Mrs. U Rivera who, having bought a ground floor flat in Langford in September 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Langford with a long lease were in the region of £193,400. The average ground rent payable was £65 collected every twelve months. The lease terminated on 7 June 2084. Having 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus costs.
Last Winter we were e-mailed by Mr and Mrs. L Collins , who owned a purpose-built flat in Langford in February 2003. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Langford with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2095. Given that there were 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 plus fees.