Manor Park leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Manor Park will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Manor Park with in excess of 100 years unexpired on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
Engaging our service gives you enhanced control over the value of your Manor Park leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luca, came perilously close to the eighty-year mark with the lease on his garden flat in Manor Park. In buying his home 19 years previously, the lease term was of little bearing. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Luca extended the lease just under the wire last September. Luca and the landlord eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have become more costly by at least £1,075.
In 2012 we were e-mailed by Mrs Alicia François who, having owned a studio flat in Manor Park in April 2003. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Manor Park with an extended lease were in the region of £265,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded in 2099. Having 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Manor Park flat 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 residue of the current lease was 65.5 years.