Unfortunately that a Langford residential lease is a deteriorating 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 reduction being disguised by increases in the Langford property prices.Where your lease has approximately ninety years left, you should start considering 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 falls lower than 80 years - otherwise a higher premium will be due. Most leasehold owners in Langford will be able to extend under the legislation; however a conveyancer 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 has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Langford with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Langford can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Langford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Edward, started to get close to the eighty-year mark with the lease on his first floor flat in Langford. In buying his flat 18 years previously, the lease term was of no significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Edward arranged for a lease extension just under the wire last July. Edward and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had fallen below 80 years, the figure would have escalated by at least £1,150.
In 2014 we were phoned by Dr H Cox who, having was assigned a lease of a one bedroom flat in Langford in June 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable residencies in Langford with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 collected every twelve months. The lease ran out in 2094. Given that there were 68 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Ms J Green acquired a studio flat in Langford in July 2000. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Langford with an extended lease were worth £285,000. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2105. Taking into account 79 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.