When it comes to residential leasehold premises in Langport, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted 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. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years left. Residents in Langport with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has less than 80 years left, under the current statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Using our service gives you enhanced control over the value of your Langport leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Seth, came critically close to the 80-year threshold with the lease on his one bedroom apartment in Langport. In buying his property two decades ago, the length of the lease was of little importance. Thankfully, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Seth arranged for a lease extension at the eleventh hour last July. Seth and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he had missed the deadline, the premium would have gone up by at least £1,050.
In 2014 we were e-mailed by Dr Y James who, having moved into a garden apartment in Langport in August 2001. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Similar flats in Langport with a long lease were valued about £173,800. The mid-range ground rent payable was £60 invoiced monthly. The lease lapsed in 2080. Considering the 55 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.
In 2010 we were called by Dr G Sharif who, having was assigned a lease of a garden flat in Langport in July 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Langport with a long lease were valued around £235,200. The average ground rent payable was £45 billed per annum. The lease terminated on 15 September 2091. Having 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.