The value of Langham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than eighty years
Leasehold premises in Langham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancing solicitors 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.
During the course of the last few months Caleb, came seriously close to the eighty-year mark with the lease on his two bedroom flat in Langham. Having purchased his home two decades ago, the length of the lease was of minimal interest. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Caleb was able to extend his lease at the eleventh hour in May. Caleb and the freeholder eventually agreed on a premium of £6,000 . If the lease had fallen to less than eighty years, the figure would have become more costly by a minimum £1,025.
Mr and Mrs. V Lefebvre was assigned a lease of a one bedroom flat in Langham in November 2000. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable flats in Langham with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired in 2081. Taking into account 55 years unexpired we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Last Summer we were contacted by Mr and Mrs. I López , who purchased a basement flat in Langham in August 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable properties in Langham with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 collected monthly. The lease terminated in 2092. Taking into account 66 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.