Why you should commence your Langland lease extension

Why you should start your Langland lease extension today:

Increase your lease and increase your Langland property value

Langland leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Langland tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Langland you would be well advised to check if your lease has between seventy and ninety years left. There are compelling reasons why a Langland flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold residencies in Langland with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may not issue a mortgage on a short lease

Most banks and building societies will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this will result in your Langland property becoming difficult to sell or to obtain finance on.

Get in touch with one of our Langland lease extension solicitors or enfranchisement solicitors

The lawyers 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 conveyancing solicitor we work with provide it.

Langland Lease Extension Case Summaries:

Eli, Langland, Swansea

During the course of the last few months Eli, started to get near to the 80-year threshold with the lease on his leasehold flat in Langland. Having bought his home 19 years previously, the lease term was of little concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Eli was able to extend his lease at the eleventh hour in August. Eli and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If he not met the deadline, the sum would have escalated by at least £950.

Langland case:

Mrs O Vincent took over the lease of a ground floor flat in Langland in May 2010. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical flats in Langland with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 billed quarterly. The lease concluded on 6 October 2085. Given that there were 59 years unexpired we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.

Langland case:

Last Christmas we were approach by Mr and Mrs. R Jackson , who purchased a one bedroom flat in Langland in April 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Langland with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 11 November 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.