Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Manchester. Inevitably, the term of lease left reduces over time. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Manchester have the right to extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Manchester lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Manchester with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by purchasing 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Manchester can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Manchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam was the the leasehold proprietor of a studio flat in Manchester being sold with a lease of fraction over sixty years left. Adam informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2009 we were called by Dr U Thomas who, having owned a ground floor flat in Manchester in February 2008. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Identical flats in Manchester with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired on 19 July 2101. Taking into account 76 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Mr and Mrs. P Pérez bought a first floor apartment in Manchester in May 2005. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Manchester with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease finished on 17 March 2081. Given that there were 56 years left we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.