Langley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Langley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Langley you should investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Langley flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Langley with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Langley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Langley valuers.
During the course of the last few months Dylan, came precariously close to the 80-year threshold with the lease on his leasehold flat in Langley. In buying his home twenty years ago, the lease term was of little relevance. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Dylan extended the lease just in the nick of time last March. Dylan and the freeholder via the managing agents in the end agreed on sum of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £875.
Mr I Lambert bought a studio flat in Langley in February 1997. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Langley with 100 year plus lease were worth £240,600. The average ground rent payable was £60 billed yearly. The lease ran out on 23 June 2088. Taking into account 62 years left we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
An example of a Freehold Enfranchisement case for a Langley residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired lease term was 69 years.