With a residential leasehold property in Wythenshawe, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Wythenshawe with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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.
Tyler was the the leasehold proprietor of a studio apartment in Wythenshawe being sold with a lease of a little over 72 years left. Tyler on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
In 2010 we were contacted by Mrs Kirsty Reed who, having was assigned a lease of a basement flat in Wythenshawe in February 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Wythenshawe with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced annually. The lease concluded in 2105. Considering the 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Last month we were phoned by Dr Dexter Lambert , who took over the lease of a ground floor flat in Wythenshawe in April 1996. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in Wythenshawe with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish in 2085. Given that there were 59 years left we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus costs.