Unfortunately that a Levenshulme residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Levenshulme property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. Most flat owners in Levenshulme will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
Irrespective of whether you are a tenant or a freeholder in Levenshulme,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Levenshulme valuers.
Cameron owned a conversion apartment in Levenshulme being marketed with a lease of a few days over 72 years unexpired. Cameron on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last month we were phoned by Mr I Davies , who completed a one bedroom flat in Levenshulme in November 2002. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative properties in Levenshulme with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2091. Having 65 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Mr Elijah Morgan was assigned a lease of a first floor flat in Levenshulme in November 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Levenshulme with a long lease were in the region of £275,000. The average ground rent payable was £55 collected annually. The lease expired on 7 November 2102. Considering the 76 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.