The nearer a domestic lease in Langstone gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 99 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Langstone will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Langstone with in excess of one hundred years unexpired 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you better control over the value of your Langstone leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her two bedroom apartment in Langstone, Mia started the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in February 2013. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. S Cook , who moved into a basement flat in Langstone in August 2003. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Langstone with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed annually. The lease finished in 2097. Considering the 71 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. A López moved into a basement apartment in Langstone in May 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical flats in Langstone with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 6 June 2077. Having 51 years as a residual term we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including costs.