Manningtree leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Manningtree enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Manningtree you should see if your lease has between seventy and ninety years left. There are compelling reasons why a Manningtree flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Manningtree with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| 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 Manningtree can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Manningtree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali owned a high value apartment in Manningtree on the market with a lease of a little over 72 years outstanding. Ali on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. U Watson purchased a one bedroom flat in Manningtree in January 2010. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Manningtree with an extended lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease expired in 2102. Considering the 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2014 we were contacted by Mr F Cooper who, having acquired a ground floor apartment in Manningtree in July 2011. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar flats in Manningtree with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 14 February 2082. Having 56 years remaining we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of fees.