Unfortunately that a Manor Park residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Manor Park property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most leasehold owners in Manor Park will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 willing 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.
Aiden was the the leasehold proprietor of a conversion apartment in Manor Park on the market with a lease of a little over fifty eight years unexpired. Aiden informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2010 we were approached by Ms Sophie Morel who, having owned a purpose-built apartment in Manor Park in May 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Manor Park with a long lease were in the region of £265,000. The average ground rent payable was £50 billed every twelve months. The lease terminated on 3 January 2100. Given that there were 74 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Manor Park residence 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 affected 2 flats. The unexpired term as at the valuation date was 65.5 years.