It’s a harsh certainty that a Mancot residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Mancot property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. The majority of flat owners in Mancot will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Mancot with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mancot can be a difficult process. We recommend you obtain 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 a wealth of experience dealing with Mancot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
James owned a high value flat in Mancot being marketed with a lease of a little over 59 years outstanding. James on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were James to invoke his statutory right. James obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Winter we were e-mailed by Mr and Mrs. P Mitchell , who moved into a one bedroom flat in Mancot in May 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Mancot with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ended on 2 November 2096. Having 71 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Mrs A Nguyen owned a recently refurbished flat in Mancot in July 1995. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable homes in Mancot with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended on 26 July 2085. Taking into account 60 years remaining we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of costs.