Unfortunately that a Wythenshawe residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Wythenshawe property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Wythenshawe will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wythenshawe can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Wythenshawe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her two bedroom apartment in Wythenshawe, Sarah started the lease extension process as the eighty year deadline was rapidly nearing. The legal work was concluded in September 2011. The landlord’s charges were restricted to slightly above six hundred GBP.
Ms Lauren Morgan bought a first floor flat in Wythenshawe in May 2004. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Identical properties in Wythenshawe with an extended lease were valued around £193,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease ran out in 2084. Given that there were 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
Last Winter we were approach by Ms Kate Moore , who bought a one bedroom apartment in Wythenshawe in August 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar homes in Wythenshawe with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed annually. The lease finished on 23 June 2095. Considering the 70 years outstanding we calculated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of legals.