For anyone whose Manchester flat is held on a long lease, the message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Manchester with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 lawyer we work with provide it.
Nathan was the the leasehold proprietor of a 2 bedroom apartment in Manchester on the market with a lease of a little over sixty years unexpired. Nathan informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2013 we were contacted by Mr and Mrs. C Allen who, having bought a purpose-built apartment in Manchester in August 2012. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Manchester with an extended lease were in the region of £200,800. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2085. Considering the 60 years left we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including legals.
Last Christmas we were contacted by Mr and Mrs. K Carter , who acquired a one bedroom apartment in Manchester in July 2002. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative homes in Manchester with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced yearly. The lease finished in 2096. Given that there were 71 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.