The value of Mancot leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is less than eighty years
Leasehold residencies in Mancot with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Mancot leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her two bedroom apartment in Mancot, Stephanie started the lease extension process as the eighty year deadline was quickly nearing. The legal work was concluded in March 2007. The freeholder’s costs were negotiated to about 550 pounds.
Last Winter we were e-mailed by Mr and Mrs. I Clark , who bought a one bedroom flat in Mancot in January 2000. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar premises in Mancot with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 billed monthly. The lease elapsed on 8 February 2098. Taking into account 72 years left we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus fees.
In 2013 we were e-mailed by Mr and Mrs. N Brooks who, having completed a garden flat in Mancot in January 2001. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Mancot with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected per annum. The lease ran out in 2087. Given that there were 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of expenses.