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Why you should commence your Langstone lease extension


Main reasons to commence your Langstone lease extension today:

A Langstone lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Langstone. Inevitably, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Langstone have the right to extend the lease for an additional 90 years in accordance with legislation. You should give due deliberation before delaying your Langstone lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.

Lenders will not issue a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become jittery at around 75 years. This will cause difficulties as and when you come to market or refinance your flat as it will be practically unmortgageable. Even though you might have no imminent desire to sell but when you do your purchaser must hold off for a couple of years before being able to exercise the right to a a lease extension.

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.
Coventry Building Society 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.
Halifax Minimum 70 years from the date 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
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Langstone lease extensions?

Lease extensions in Langstone can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Langstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Langstone Lease Extension Example Cases:

Alexandra, Langstone, Newport,

Off the back of lengthy negotiations with the landlord of her purpose-built apartment in Langstone, Alexandra initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction completed in April 2011. The freeholder’s charges were negotiated to about 650 pounds.

Langstone case:

Mr and Mrs. M Thompson was assigned a lease of a one bedroom flat in Langstone in November 1998. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar properties in Langstone with a long lease were in the region of £183,600. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 15 September 2082. Considering the 57 years outstanding we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.

Langstone case:

In 2010 we were e-mailed by Dr B Rogers who, having completed a basement flat in Langstone in August 2003. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative properties in Langstone with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out on 4 September 2093. Taking into account 68 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.