Longford Lease Extension - Free Consultation

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Main reasons to commence your Longford lease extension


Top reasons for lease extension now:

Increase your lease and increase your Longford property value

There is no doubt about it a leasehold property in Longford is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under 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 consider extending without delay. The majority of flat owners in Longford will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Longford property with a lease extension has roughly the same value as a freehold

Leasehold properties in Longford with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions will not lend on a short lease

Banks and Building Societies have specific criteria when lending funds charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term drops below a specified unexpired lease term. Many Lending institutions will not regard property with a remaining term of less than 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Longford property.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start 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.
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Longford lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Longford,the lease extension solicitors 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 Longford valuers.

Longford Lease Extension Example Cases:

Rhiannon, Longford, West London,

Off the back of lengthy discussions with the landlord of her basement apartment in Longford, Rhiannon commenced the lease extension process as the eighty year threshold was swiftly nearing. The legal work completed in April 2007. The landlord’s costs were restricted to slightly above six hundred pounds.

Longford case:

Dr Tyler Morgan moved into a first floor apartment in Longford in January 2008. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Longford with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 billed annually. The lease termination date was in 2084. Taking into account 60 years outstanding we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.

Decision in Hillingdon

An example of a Freehold Enfranchisement decision for a Longford property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired residue of the current lease was 69 years.