Manor Park leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Manor Park will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Manor Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Dylan, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Manor Park. In buying his flat two decades ago, the unexpired term was of minimal relevance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Dylan arranged for a lease extension just in the nick of time last June. Dylan and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the price would have gone up by at least £875.
Mr and Mrs. E Rogers took over the lease of a garden flat in Manor Park in March 1995. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Manor Park with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 4 September 2088. Given that there were 63 years left we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus fees.
An example of a Lease Extension decision 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 was in relation to 2 flats. The unexpired term as at the valuation date was 65.5 years.