Manor Park leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Manor Park will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Manor Park,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Manor Park valuers.
Luca owned a conversion apartment in Manor Park on the market with a lease of a little over sixty years unexpired. Luca informally approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luca to invoke his statutory right. Luca obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were contacted by Mr I Cox who, having moved into a basement flat in Manor Park in February 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar homes in Manor Park with a long lease were worth £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease lapsed in 2097. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension decision for a Manor Park property is 240 Strone Road in January 2014. the tribunal held that the price to be paid for the freehold interest was£23,538 of which£13,017 is attributable to the ground floor flat and £10,521 to the first floor flat. This case was in relation to 2 flats. The unexpired lease term was 65.5 years.