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Top reasons for Manor Park lease extension


Top reasons for lease extension now:

A Manor Park leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Manor Park domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Manor Park will meet the qualifying criteria; however a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Manor Park with in excess of 100 years unexpired on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to lend on a short lease

Lending institutions are less likely to give a mortgage on a domestic property in Manor Park with a short lease. Many lenders simply refuse a mortgage on leases with less than 75 years remaining.

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.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea 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.
Leeds Building Society 85 years remaining from the start of the mortgage.

Why use us for your lease extension in Manor Park?

Lease extensions in Manor Park can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.

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 procuring Manor Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Manor Park Lease Extension Example Cases:

Adam, Manor Park, London

In recent months Adam, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Manor Park. In buying his home two decades ago, the lease term was of minimal importance. Thankfully, he realised he would imminently be paying an inflated amount for a lease extension. Adam extended the lease at the eleventh hour in March. Adam and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If the lease had slid below eighty years, the price would have escalated by at least £925.

Manor Park case:

Dr Kian Mitchell acquired a studio flat in Manor Park in September 2008. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Manor Park with 100 year plus lease were valued about £242,600. The mid-range ground rent payable was £45 collected every twelve months. The lease came to a finish on 1 June 2092. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus costs.

Decision in Newham

An example of a Lease Extension case for a Manor Park premises is 240 Strone Road in January 2014. the tribunal held that the price to be paid for the freehold interest was£23,538 of which£13,017 is attributable to the ground floor flat and £10,521 to the first floor flat. This case related to 2 flats. The unexpired lease term was 65.5 years.