The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Manchester have the right to extend the lease for an additional ninety years in accordance with statute. Do think carefully before delaying your Manchester lease extension. Postponing the costs today simply increases the price you will ultimately have to pay to extend the lease.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Manchester,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Manchester valuers.
Trailing unsuccessful correspondence with the freeholder of her one bedroom flat in Manchester, Lily initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension completed in June 2010. The landlord’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Ms Daisy Robinson , who owned a ground floor apartment in Manchester in February 2000. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical properties in Manchester with an extended lease were in the region of £191,000. The average ground rent payable was £65 billed yearly. The lease ran out in 2083. Having 58 years left we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.
Last Spring we were e-mailed by Mr and Mrs. A Cox , who was assigned a lease of a newly refurbished flat in Manchester in June 2010. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable homes in Manchester with a long lease were worth £250,000. The average ground rent payable was £50 collected yearly. The lease terminated in 2094. Given that there were 69 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.