Levenshulme leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Flat owners in Levenshulme will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Levenshulme with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Levenshulme,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Levenshulme valuers.
Ali owned a conversion flat in Levenshulme being marketed with a lease of a little over sixty years left. Ali on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2010 we were contacted by Ms Hannah Rose who, having owned a garden flat in Levenshulme in October 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Levenshulme with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed in 2095. Taking into account 70 years left we approximated the premium to the landlord to extend the lease to be between £10,500 and £12,000 plus costs.
In 2012 we were called by Mr L White who, having acquired a ground floor flat in Levenshulme in July 2007. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar homes in Levenshulme with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 billed yearly. The lease end date was in 2075. Having 50 years outstanding we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus professional charges.