The closer a domestic lease in Langford gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Many flat owners in Langford will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Langford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Langford valuers.
Off the back of protracted correspondence with the landlord of her two bedroom flat in Langford, Emma started the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was concluded in May 2009. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Mr R Adams who, having owned a first floor apartment in Langford in April 2009. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Similar homes in Langford with an extended lease were worth £227,800. The average amount of ground rent was £45 billed annually. The lease concluded in 2091. Given that there were 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2009 we were approached by Ms Francesca James who, having completed a purpose-built apartment in Langford in September 2001. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable properties in Langford with a long lease were in the region of £275,000. The average ground rent payable was £55 collected every twelve months. The lease terminated on 11 March 2102. Having 76 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.