Mancot leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Mancot tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Mancot you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 enhanced control over the value of your Mancot leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Omar, came seriously close to the eighty-year threshold with the lease on his basement flat in Mancot. Having bought his home two decades ago, the lease term was of no relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Omar extended the lease just under the wire in September. Omar and the freeholder eventually settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £875.
Dr Erin Gunderson bought a one bedroom apartment in Mancot in September 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Mancot with an extended lease were in the region of £265,200. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed on 11 January 2091. Given that there were 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus fees.
In 2011 we were called by Dr L Collins who, having acquired a ground floor apartment in Mancot in August 2001. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Mancot with an extended lease were worth £198,800. The average amount of ground rent was £55 collected annually. The lease elapsed on 7 March 2080. Considering the 55 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including expenses.