Langley leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Flat owners in Langley will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Langley with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 lawyer we work with provide it.
Last October Oscar, started to get close to the 80-year threshold with the lease on his leasehold flat in Langley. In buying his flat two decades ago, the lease term was of no significance. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Oscar extended the lease at the eleventh hour last September. Oscar and the landlord ultimately settled on sum of £6,000 . If the lease had slid below 80 years, the premium would have increased by at least £925.
Dr Ellen Reed acquired a newly refurbished flat in Langley in July 2006. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical premises in Langley with a long lease were worth £225,800. The mid-range amount of ground rent was £60 collected annually. The lease end date was on 27 May 2085. Considering the 60 years unexpired we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.
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 was 69 years.