The closer a domestic lease in Langford nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Langford will qualify for this right; however a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
Irrespective of whether you are a tenant or a freeholder in Langford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Langford valuers.
Alex owned a high value flat in Langford being sold with a lease of a few days over sixty years left. Alex on an informal basis contacted his landlord 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 subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Mr M Murphy owned a ground floor apartment in Langford in August 2003. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar flats in Langford with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2093. Given that there were 68 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Mr and Mrs. N Bailey acquired a one bedroom apartment in Langford in June 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative homes in Langford with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease expired on 26 March 2104. Considering the 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.