Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Manningtree. Clearly, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Manningtree have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give careful attention before putting off your Manningtree lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with more than 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 residence will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you better control over the value of your Manningtree leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Stanley, started to get close to the 80-year mark with the lease on his garden apartment in Manningtree. Having bought his flat 18 years ago, the length of the lease was of little relevance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Stanley extended the lease just ahead of time last September. Stanley and the landlord in the end agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the premium would have gone up by a minimum £1,000.
Mr Zachary Michel owned a ground floor flat in Manningtree in August 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Manningtree with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed yearly. The lease terminated on 8 February 2098. Considering the 73 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were e-mailed by Dr W Ali who, having acquired a purpose-built flat in Manningtree in November 2012. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable residencies in Manningtree with a long lease were worth £264,000. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish on 9 February 2078. Taking into account 53 years outstanding we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.