The re-sale value of a leasehold property in Manor Park is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation enables Manor Park qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Manor Park with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Manor Park can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge 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.
Last year Blake, came critically near to the 80-year mark with the lease on his garden apartment in Manor Park. In buying his property 18 years ago, the lease term was of no bearing. Luckily, he became aware that he needed to take steps soon on Extending the lease. Blake was able to extend his lease just under the wire in April. Blake and the freeholder eventually settled on an amount of £5,000 . If the lease had dropped below 80 years, the sum would have increased by at least £1,000.
Last Autumn we were contacted by Mr Samuel Evans , who owned a first floor flat in Manor Park in July 2001. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Manor Park with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated in 2096. Considering the 71 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal 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 term as at the valuation date was 65.5 years.