With a long leasehold property in Mancot, you are in fact renting it for a certain 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 extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years remaining. Anyone in Mancot with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Mancot with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Mancot lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Reuben, came very close to the eighty-year mark with the lease on his leasehold apartment in Mancot. In buying his property two decades ago, the lease term was of minimal interest. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Reuben arranged for a lease extension just under the wire in March. Reuben and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have increased by a minimum £900.
Ms O Rivera completed a studio flat in Mancot in November 1996. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Mancot with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease terminated in 2077. Having 52 years unexpired we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
Last Autumn we were called by Mr Muhammad Turner , who moved into a ground floor flat in Mancot in October 2011. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable residencies in Mancot with an extended lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease lapsed on 12 June 2097. Considering the 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.