When it comes to domestic leasehold premises in Manselton, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Manselton with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the relevant Act the landlord can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Manselton with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Manselton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael owned a high value flat in Manselton being sold with a lease of just over 61 years remaining. Michael on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr Robyn Morris took over the lease of a purpose-built apartment in Manselton in June 2008. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Manselton with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 billed annually. The lease ended in 2104. Having 78 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
In 2009 we were phoned by Mr Aiden Laurent who, having completed a one bedroom apartment in Manselton in February 2010. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Manselton with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 collected quarterly. The lease ran out in 2093. Considering the 67 years left we estimated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.