It’s an underpublicised truth that a Mancot residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Mancot property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below 80 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. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Mancot will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Mancot with in excess of 100 years unexpired on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Mancot can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Trailing lengthy negotiations with the freeholder of her purpose-built apartment in Mancot, Robyn started the lease extension process as the eighty year deadline was fast advancing. The lease extension was finalised in August 2015. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Mr Nathan Bonnet , who took over the lease of a one bedroom apartment in Mancot in January 2002. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar premises in Mancot with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease finished on 9 June 2085. Having 60 years left we approximated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 plus fees.
Last Summer we were called by Mr and Mrs. T Howard , who moved into a garden flat in Mancot in April 2003. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable premises in Mancot with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed annually. The lease terminated in 2105. Having 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.