The market value of a leasehold property in Mancot is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised well before the eighty year cut off point. Leasehold Reform legislation entitles Mancot qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Mancot with over 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
The conveyancing solicitors that we work with handle Mancot 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.
Following protracted discussions with the landlord of her basement apartment in Mancot, Daisy commenced the lease extension process as the eighty year threshold was fast coming. The lease extension was finalised in November 2013. The landlord’s fees were kept to an absolute minimum.
Ms Bethany James took over the lease of a recently refurbished flat in Mancot in April 1995. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Mancot with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected annually. The lease concluded on 15 November 2106. Taking into account 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
In 2011 we were phoned by Mr and Mrs. J Hall who, having acquired a studio flat in Mancot in June 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical premises in Mancot with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease ran out on 9 January 2095. Taking into account 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.