Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Langland. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Langland have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful attention before delaying your Langland lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold residencies in Langland with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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 conveyancing solicitors that we work with undertake Langland 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.
After unsuccessful negotiations with the freeholder of her garden flat in Langland, Melissa commenced the lease extension process as the 80 year threshold was quickly advancing. The lease extension completed in September 2013. The landlord’s costs were negotiated to less than four hundred GBP.
In 2010 we were phoned by Mr I Phillips who, having acquired a first floor apartment in Langland in August 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Langland with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 5 February 2097. Having 71 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last October we were approach by Mrs Amber Rogers , who acquired a purpose-built apartment in Langland in October 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Langland with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2077. Having 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus expenses.