It’s a harsh certainty 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 taken for granted in the early years due to the loss of value being disguised by increases in the Wythenshawe property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining drops below 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. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Wythenshawe will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Wythenshawe with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with undertake 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.
Seth owned a studio apartment in Wythenshawe on the market with a lease of fraction over sixty years unexpired. Seth on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to 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 Seth to exercise his statutory right. Seth obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Dr Leon Walker acquired a first floor apartment in Wythenshawe in July 2000. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Wythenshawe with an extended lease were in the region of £208,200. The average amount of ground rent was £65 invoiced per annum. The lease lapsed on 5 February 2087. Taking into account 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including fees.
Mr and Mrs. K Young was assigned a lease of a purpose-built flat in Wythenshawe in September 2000. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar premises in Wythenshawe with an extended lease were valued around £260,000. The average amount of ground rent was £50 collected per annum. The lease lapsed in 2098. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.