The market value of a leasehold property in Park Langley depends on how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Park Langley qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Park Langley can be a difficult process. We recommend you obtain guidance 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 a wealth of experience dealing with Park Langley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan was the the leasehold owner of a 2 bedroom flat in Park Langley being marketed with a lease of a few days over 72 years outstanding. Logan informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were e-mailed by Dr V Patel who, having took over the lease of a first floor apartment in Park Langley in November 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Park Langley with a long lease were worth £225,800. The mid-range ground rent payable was £60 billed every twelve months. The lease expired on 7 March 2086. Given that there were 60 years remaining we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 plus professional charges.
Mr and Mrs. W Rogers took over the lease of a studio flat in Park Langley in August 2002. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Identical homes in Park Langley with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 1 May 2106. Given that there were 80 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.