Langley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result 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 really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Langley flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 conveyancers that we work with undertake Langley 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.
Trailing unsuccessful discussions with the landlord of her leasehold flat in Langley, Aimee initiated the lease extension process as the eighty year mark was quickly advancing. The legal work was finalised in February 2011. The landlord’s costs were kept to an absolute minimum.
In 2014 we were approached by Dr W Stewart who, having completed a first floor apartment in Langley in July 2001. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical flats in Langley with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded on 9 October 2081. Considering the 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.
An example of a Freehold Enfranchisement case for a Langley property 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 affected 2 flats. The unexpired term as at the valuation date was 69 years.