Langland leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Langland will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Langland leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her purpose-built flat in Langland, Catherine initiated the lease extension process as the eighty year deadline was fast approaching. The transaction was concluded in October 2005. The freeholder’s charges were restricted to a tad over 450 pounds.
Mr and Mrs. M Girard was assigned a lease of a one bedroom flat in Langland in February 2003. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Langland with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected monthly. The lease end date was on 14 September 2094. Taking into account 69 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last October we were phoned by Ms Isabella Martínez , who owned a garden flat in Langland in July 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Langland with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 24 January 2105. Taking into account 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.