Chances are that if you own a flat in Manchester you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with undertake Manchester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Matthew owned a studio apartment in Manchester being sold with a lease of a few days over fifty eight years outstanding. Matthew on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2014 we were approached by Mr and Mrs. N Robinson who, having completed a studio flat in Manchester in March 2002. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Manchester with a long lease were valued around £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended on 19 August 2093. Having 68 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mr and Mrs. U Gunderson took over the lease of a one bedroom apartment in Manchester in April 1995. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Manchester with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired in 2104. Having 79 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.