Chances are that if you own a flat in Levenshulme you actually own a long leasehold interest over your property
Leasehold residencies in Levenshulme with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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 | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Levenshulme can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Levenshulme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a 2 bedroom apartment in Levenshulme being marketed with a lease of a few days over 61 years outstanding. Matthew informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last year we were approach by Mr and Mrs. A González , who took over the lease of a first floor apartment in Levenshulme in April 2010. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparative residencies in Levenshulme with a long lease were worth £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated on 13 July 2088. Having 63 years unexpired we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.
Mr F Watson completed a one bedroom flat in Levenshulme in April 2002. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative properties in Levenshulme with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed in 2099. Having 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.