When it comes to residential leasehold property in Wythenshawe, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Wythenshawe with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the current statute the freeholder can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Wythenshawe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her studio apartment in Wythenshawe, Olivia commenced the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in October 2005. The freeholder’s charges were kept to an absolute minimum.
Last year we were contacted by Dr M Rodríguez , who completed a one bedroom apartment in Wythenshawe in July 2009. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar residencies in Wythenshawe with an extended lease were worth £183,600. The average ground rent payable was £65 collected every twelve months. The lease ran out in 2083. Given that there were 57 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Dr S Scott was assigned a lease of a studio apartment in Wythenshawe in October 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Wythenshawe with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2094. Having 68 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.