The value of Park Langley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Park Langley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Park Langley valuers.
In 2014 Callum, came dangerously near to the 80-year threshold with the lease on his one bedroom apartment in Park Langley. In buying his flat two decades ago, the length of the lease was of little relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Callum extended the lease just under the wire last March. Callum and the landlord subsequently agreed on sum of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,025.
In 2013 we were contacted by Mr and Mrs. F Smith who, having bought a newly refurbished flat in Park Langley in September 2002. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative properties in Park Langley with a long lease were worth £300,000. The average ground rent payable was £50 collected quarterly. The lease elapsed in 2102. Taking into account 76 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Summer we were contacted by Mr and Mrs. P Brown , who was assigned a lease of a one bedroom flat in Park Langley in June 2005. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar premises in Park Langley with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected annually. The lease ran out on 14 March 2091. Given that there were 65 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.