The re-sale value of a leasehold property in Langland depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year mark. Current legislation entitles Langland qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Langland with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 handle 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 conveyancer we work with provide it.
James owned a high value flat in Langland on the market with a lease of a few days over 59 years remaining. James informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James obtained expert advice and secured an acceptable resolution informally and sell the property.
Last Autumn we were e-mailed by Mr and Mrs. U Nguyen , who purchased a ground floor apartment in Langland in October 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Langland with 100 year plus lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished in 2075. Considering the 50 years outstanding we calculated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of expenses.
In 2014 we were approached by Dr I Alexander who, having completed a garden apartment in Langland in July 2007. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Langland with 100 year plus lease were valued about £203,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated on 14 May 2086. Taking into account 61 years remaining we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including costs.