Wythenshawe residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Wythenshawe leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the landlord of her one bedroom apartment in Wythenshawe, Elizabeth commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was finalised in February 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. O Green purchased a basement flat in Wythenshawe in July 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Wythenshawe with a long lease were valued about £176,200. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish in 2082. Considering the 56 years remaining we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.
Mr and Mrs. G Morgan bought a basement flat in Wythenshawe in July 2006. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Wythenshawe with a long lease were valued about £242,600. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish in 2093. Having 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus expenses.