On the balance of probabilities where you own a flat in Manselton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives 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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ryan owned a conversion apartment in Manselton being sold with a lease of a few days over 72 years left. Ryan informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
Mr and Mrs. G Lambert completed a ground floor apartment in Manselton in January 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Manselton with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 collected per annum. The lease concluded on 10 March 2093. Considering the 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Last Spring we were phoned by Mr and Mrs. W Ali , who acquired a studio flat in Manselton in November 2004. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable properties in Manselton with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease ended on 21 August 2082. Considering the 57 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.