Ardwick leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Ardwick will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Ardwick with in excess of one hundred years left 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 |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ardwick,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ardwick valuers.
John owned a 2 bedroom flat in Ardwick on the market with a lease of just over fifty eight years unexpired. John informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. E Green was assigned a lease of a first floor apartment in Ardwick in September 2004. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative residencies in Ardwick with a long lease were in the region of £256,600. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2078. Considering the 52 years unexpired we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of fees.
In 2011 we were called by Ms Mia Lefebvre who, having purchased a first floor apartment in Ardwick in November 2001. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Ardwick with 100 year plus lease were worth £218,000. The average ground rent payable was £45 invoiced per annum. The lease lapsed in 2089. Considering the 63 years remaining we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus costs.