For anyone whose Manchester property is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Manchester with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service gives you increased control over the value of your Manchester leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the freeholder of her basement flat in Manchester, Chloe started the lease extension process as the eighty year mark was quickly coming. The legal work completed in May 2013. The freeholder’s costs were restricted to under 450 pounds.
Last Spring we were called by Mr and Mrs. W Rodríguez , who was assigned a lease of a one bedroom flat in Manchester in September 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Manchester with a long lease were worth £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out in 2085. Given that there were 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
In 2013 we were approached by Mrs Jasmine Williams who, having purchased a garden flat in Manchester in June 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical homes in Manchester with 100 year plus lease were valued about £255,000. The average ground rent payable was £50 collected yearly. The lease elapsed in 2096. Considering the 70 years unexpired we calculated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including fees.