Manchester leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Manchester will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you enhanced control over the value of your Manchester leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Isaac, started to get close to the eighty-year mark with the lease on his garden apartment in Manchester. Having bought his property twenty years previously, the length of the lease was of no relevance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Isaac arranged for a lease extension just in the nick of time last September. Isaac and the freeholder eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by a minimum £1,125.
Mr and Mrs. B Girard purchased a garden apartment in Manchester in February 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar homes in Manchester with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed on 1 February 2075. Given that there were 50 years left we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including legals.
Last Christmas we were contacted by Dr Hugo James , who acquired a garden apartment in Manchester in November 1999. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Manchester with a long lease were worth £208,200. The average amount of ground rent was £65 billed quarterly. The lease ran out in 2086. Having 61 years left we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.