The only way is down when it comes to Langley lease terms. Langley flats that have a lease term fewer than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Langley with over 100 years outstanding 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you better control over the value of your Langley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Lewis, started to get near to the 80-year mark with the lease on his first floor flat in Langley. In buying his home two decades ago, the lease term was of no relevance. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Lewis was able to extend his lease at the eleventh hour in July. Lewis and the freeholder subsequently settled on sum of £6,000 . If the lease had fallen below 80 years, the sum would have escalated by at least £925.
Last March we were e-mailed by Dr C Morel , who completed a purpose-built apartment in Langley in September 2012. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Langley with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected yearly. The lease termination date was in 2098. Taking into account 73 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Langley premises 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 was in relation to 2 flats. The unexpired term was 69 years.