Wythenshawe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wythenshawe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wythenshawe you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Alexander owned a 2 bedroom apartment in Wythenshawe being sold with a lease of a few days over sixty years left. Alexander on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last Winter we were e-mailed by Mrs Georgina Wilson , who bought a studio flat in Wythenshawe in January 1998. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Similar residencies in Wythenshawe with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 10 October 2090. Considering the 64 years outstanding we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including professional charges.
Last month we were e-mailed by Mrs H Brown , who purchased a ground floor flat in Wythenshawe in November 1999. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Identical properties in Wythenshawe with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished on 26 March 2101. Given that there were 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.