Manningtree leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Manningtree residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Manningtree you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Manningtree with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Manningtree,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Manningtree valuers.
Trailing lengthy negotiations with the landlord of her one bedroom apartment in Manningtree, Alicia started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was concluded in March 2011. The landlord’s fees were kept to an absolute minimum.
In 2012 we were called by Ms H Wood who, having owned a purpose-built flat in Manningtree in April 2001. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Manningtree with an extended lease were worth £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated in 2103. Having 78 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
In 2011 we were e-mailed by Dr Tyler Lefebvre who, having acquired a one bedroom flat in Manningtree in February 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Manningtree with 100 year plus lease were in the region of £186,000. The average amount of ground rent was £65 invoiced quarterly. The lease concluded in 2083. Considering the 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of expenses.