Unfortunately that a Manselton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Manselton property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Manselton will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Manselton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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 terms 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.
After protracted discussions with the landlord of her studio flat in Manselton, Caitlin started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was concluded in November 2007. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mrs Sophie Miller who, having purchased a one bedroom apartment in Manselton in May 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Manselton with a long lease were worth £201,200. The mid-range amount of ground rent was £55 collected yearly. The lease ran out in 2081. Considering the 56 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.
Mr and Mrs. H Torres completed a recently refurbished apartment in Manselton in March 2006. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Manselton with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected yearly. The lease lapsed in 2101. Considering the 76 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.