Langport leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Langport residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Langport you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Langport leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Langport with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Langport 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.
Charlie was the the leasehold owner of a 2 bedroom apartment in Langport on the market with a lease of just over sixty years remaining. Charlie on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were approach by Mr and Mrs. F Martínez , who bought a one bedroom flat in Langport in August 2001. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar properties in Langport with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed yearly. The lease came to a finish on 24 March 2104. Taking into account 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
Last Winter we were e-mailed by Ms M Bertrand , who bought a one bedroom apartment in Langport in April 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar homes in Langport with 100 year plus lease were valued around £193,400. The average ground rent payable was £65 collected yearly. The lease lapsed on 26 July 2084. Taking into account 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including costs.