When it comes to residential leasehold premises in Mancot, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Mancot with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under eighty years left, under the current legislation the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Mancot with in excess of 100 years remaining 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mancot can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 in-depth market knowledge 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.
Tommy owned a 2 bedroom apartment in Mancot being marketed with a lease of just over fifty eight years remaining. Tommy on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were approached by Dr Joshua Walker who, having owned a one bedroom flat in Mancot in May 2007. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative homes in Mancot with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease expiry date was on 11 November 2077. Given that there were 51 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.
Dr Ethan Cox bought a one bedroom flat in Mancot in February 2007. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Mancot with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2097. Having 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.