When it comes to residential leasehold premises in Langham, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Residents in Langham with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has under 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle Langham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Ibrahim, started to get close to the 80-year mark with the lease on his basement apartment in Langham. Having purchased his flat 18 years ago, the length of the lease was of no relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Ibrahim extended the lease at the eleventh hour in April. Ibrahim and the freeholder subsequently settled on a premium of £5,000 . If the lease had slid to less than eighty years, the figure would have increased by a minimum £925.
In 2014 we were called by Dr G Scott who, having bought a basement apartment in Langham in April 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Langham with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 invoiced monthly. The lease ran out on 21 March 2083. Considering the 58 years outstanding we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus costs.
Last year we were approach by Dr Matthew Morgan , who acquired a studio apartment in Langham in November 2000. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Langham with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 1 March 2094. Given that there were 69 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.