The re-sale value of a leasehold property in Langley is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded well before the 80 year mark. Current legislation entitles Langley qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Langley with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Langley,the lease extension solicitors that we work with will always be willing 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.
Lucas was the the leasehold owner of a conversion apartment in Langley being sold with a lease of just over 59 years unexpired. Lucas on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2013 we were phoned by Mr and Mrs. V Mitchell who, having acquired a ground floor flat in Langley in January 2010. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Langley with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease concluded on 9 June 2097. Considering the 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Langley flat 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.