Wythenshawe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Wythenshawe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wythenshawe you should see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Wythenshawe with more than 100 years remaining on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancer we work with provide it.
Joshua was the the leasehold owner of a conversion flat in Wythenshawe being sold with a lease of a few days over 61 years outstanding. Joshua on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr P García moved into a purpose-built flat in Wythenshawe in January 1997. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Wythenshawe with a long lease were in the region of £255,000. The average ground rent payable was £50 billed annually. The lease terminated on 28 February 2097. Considering the 71 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Summer we were called by Dr Morgan Scott , who moved into a one bedroom apartment in Wythenshawe in April 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Wythenshawe with an extended lease were worth £254,200. The average amount of ground rent was £60 collected per annum. The lease elapsed on 15 September 2077. Having 51 years left we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.