When it comes to residential leasehold property in Langport, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Langport with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has less than eighty years left, under the relevant statute the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Langport with over 100 years outstanding on the lease are sometimes regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Langport,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Langport valuers.
In recent months Logan, came perilously near to the eighty-year mark with the lease on his garden flat in Langport. Having purchased his flat 19 years previously, the unexpired term was of little importance. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Logan arranged for a lease extension just under the wire in January. Logan and the landlord in the end agreed on a premium of £5,500 . If the lease had descended lower than 80 years, the figure would have increased by at least £1,025.
Mr and Mrs. T Torres completed a first floor apartment in Langport in July 1999. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical premises in Langport with a long lease were in the region of £246,800. The average ground rent payable was £60 collected per annum. The lease ended in 2076. Given that there were 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.
Mr and Mrs. L Torres completed a studio apartment in Langport in June 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical premises in Langport with an extended lease were worth £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired in 2087. Having 61 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.