When it comes to domestic leasehold property in Manchester, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Residents in Manchester with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years left, under the current statute the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you increased control over the value of your Manchester leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden was the the leasehold proprietor of a high value flat in Manchester being sold with a lease of fraction over 59 years left. Aiden informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were phoned by Mr Jayden Hill who, having bought a recently refurbished apartment in Manchester in May 1998. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar flats in Manchester with an extended lease were valued around £173,800. The mid-range amount of ground rent was £60 collected yearly. The lease concluded on 19 February 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.
Last year we were e-mailed by Dr Joshua Thomas , who bought a studio flat in Manchester in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Manchester with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 10 August 2092. Having 66 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.