With a long leasehold property in Manor Park, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Manor Park with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once a lease has fewer than eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Manor Park with in excess of 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing 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. |
| 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. |
| Coventry Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Manor Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Manor Park valuers.
Off the back of protracted discussions with the freeholder of her garden apartment in Manor Park, Niamh initiated the lease extension process as the eighty year threshold was swiftly coming. The lease extension was concluded in August 2012. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. G Nelson who, having acquired a one bedroom flat in Manor Park in January 2000. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Comparable properties in Manor Park with 100 year plus lease were worth £225,400. The average ground rent payable was £45 invoiced per annum. The lease end date was in 2088. Considering the 64 years remaining we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of legals.
An example of a Lease Extension case for a Manor Park residence 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.