As the the remaining lease term of a Langstone domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Langstone will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Engaging our service gives you enhanced control over the value of your Langstone leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her leasehold apartment in Langstone, Paige started the lease extension process as the eighty year mark was fast nearing. The transaction completed in August 2005. The freeholder’s costs were negotiated to below 500 pounds.
Mr I Martinez acquired a garden apartment in Langstone in May 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Langstone with 100 year plus lease were valued around £225,400. The mid-range ground rent payable was £45 collected yearly. The lease expired on 5 September 2090. Given that there were 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of professional charges.
Last Spring we were called by Dr H Simon , who took over the lease of a garden apartment in Langstone in March 2008. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Langstone with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2101. Given that there were 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.