Unfortunately that a Manningtree residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Manningtree property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Manningtree will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Manningtree with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Manningtree leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Logan, started to get close to the eighty-year mark with the lease on his purpose- built flat in Manningtree. Having purchased his home two decades ago, the length of the lease was of minimal concern. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Logan arranged for a lease extension just under the wire last May. Logan and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,100.
Mr Adam Parker was assigned a lease of a one bedroom apartment in Manningtree in October 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Identical premises in Manningtree with 100 year plus lease were in the region of £256,600. The average ground rent payable was £60 collected per annum. The lease terminated on 7 May 2078. Taking into account 52 years left we calculated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 exclusive of professional charges.
In 2011 we were e-mailed by Mr and Mrs. J Ward who, having moved into a one bedroom flat in Manningtree in June 1997. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Similar homes in Manningtree with a long lease were valued around £218,000. The average ground rent payable was £45 billed yearly. The lease termination date was in 2089. Considering the 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of legals.