When it comes to long leasehold premises in Mancot, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years remaining. Leasehold owners in Mancot with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once the lease term has less than eighty years outstanding, under the relevant statute the landlord can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you increased control over the value of your Mancot leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Eli, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Mancot. Having purchased his flat two decades ago, the length of the lease was of little importance. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Eli extended the lease at the eleventh hour last April. Eli and the freeholder via the management company eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £1,025.
In 2012 we were called by Mr and Mrs. L Clark who, having acquired a recently refurbished flat in Mancot in March 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Mancot with a long lease were worth £243,000. The average amount of ground rent was £65 billed yearly. The lease terminated on 9 November 2088. Having 63 years left we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Last Winter we were approach by Ms B André , who was assigned a lease of a purpose-built flat in Mancot in April 2002. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical premises in Mancot with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 billed yearly. The lease ran out in 2077. Having 52 years outstanding we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.