There is no doubt about it a leasehold property in Wythenshawe is a wasting asset as a result of the shortening lease. If the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Wythenshawe will qualify for this right; 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 owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with handle Wythenshawe 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.
Harvey owned a high value flat in Wythenshawe being sold with a lease of a few days over fifty eight years unexpired. Harvey informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Mrs Freya Baker who, having moved into a studio apartment in Wythenshawe in August 2009. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Wythenshawe with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed on 26 April 2103. Given that there were 78 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
In 2013 we were phoned by Dr D Turner who, having was assigned a lease of a one bedroom flat in Wythenshawe in January 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative residencies in Wythenshawe with an extended lease were worth £191,000. The average amount of ground rent was £65 billed per annum. The lease lapsed on 16 August 2083. Given that there were 58 years remaining we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus expenses.