Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Wythenshawe. Clearly, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Wythenshawe have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give due deliberation before putting off your Wythenshawe lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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.
Trailing lengthy correspondence with the landlord of her one bedroom flat in Wythenshawe, Lucy initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The lease extension was finalised in February 2005. The freeholder’s fees were restricted to approximately four hundred pounds.
Mr and Mrs. L Lewis purchased a one bedroom apartment in Wythenshawe in September 2012. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar flats in Wythenshawe with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease termination date was in 2101. Having 75 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Autumn we were approach by Mr George Rose , who was assigned a lease of a studio apartment in Wythenshawe in November 2008. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical homes in Wythenshawe with a long lease were in the region of £173,800. The average ground rent payable was £60 billed quarterly. The lease came to a finish on 3 July 2081. Given that there were 55 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.