Wythenshawe leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Wythenshawe will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Wythenshawe with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
The conveyancers 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.
During the course of the last few months Sebastian, came very close to the eighty-year mark with the lease on his purpose- built flat in Wythenshawe. Having bought his property two decades ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would soon be paying way over the odds for a lease extension. Sebastian was able to extend his lease just under the wire last July. Sebastian and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had dropped to less than 80 years, the premium would have gone up by a minimum £1,075.
Mr and Mrs. M Bernard was assigned a lease of a ground floor flat in Wythenshawe in February 2011. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Comparative residencies in Wythenshawe with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 10 September 2106. Having 80 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Mr and Mrs. D Kelly acquired a basement flat in Wythenshawe in January 2002. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Wythenshawe with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease elapsed on 4 August 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of legals.