The market value of Levenshulme leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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. |
Lease extensions in Levenshulme can be a difficult process. We recommend you get guidance from a conveyancer 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 dealing with Levenshulme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold owner of a studio flat in Levenshulme being marketed with a lease of a little over 59 years left. Ollie informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last year we were e-mailed by Dr I Cook , who acquired a recently refurbished apartment in Levenshulme in March 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Levenshulme with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 collected yearly. The lease elapsed on 19 November 2076. Taking into account 51 years remaining we estimated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus legals.
In 2011 we were e-mailed by Mrs F Jones who, having bought a recently refurbished flat in Levenshulme in July 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Levenshulme with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 invoiced per annum. The lease finished in 2087. Given that there were 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.