The market value of Mancot leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Mancot can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mancot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her basement apartment in Mancot, Natasha initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work completed in April 2008. The freeholder’s charges were kept to an absolute minimum.
Last April we were approach by Mrs E Ricardo , who bought a first floor flat in Mancot in July 2000. The question was if we could approximate the price would be for a ninety year lease extension. Comparable homes in Mancot with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 billed quarterly. The lease terminated in 2087. Given that there were 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus professional charges.
Mr I González bought a one bedroom flat in Mancot in July 2010. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Identical premises in Mancot with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 billed annually. The lease finished in 2076. Given that there were 50 years unexpired we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.