Main reasons to start your Manor Park lease extension
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Why you should start your Manor Park lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/manor-park">Manor Park</a> property value </h4>
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Manor Park leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Manor Park will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
<h4>Manor Park property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Manor Park 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it. <h4>Lenders will not loan monies with a short lease</h4>
Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be insufficient security.
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<tr><th>Lender</th>
<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Godiva Mortgages</td>
<td> A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />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.
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<h4> Get in touch with one of our Manor Park lease extension solicitors or enfranchisement solicitors
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The conveyancers that we work with handle Manor Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
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Manor Park Lease Extension Case Summaries:
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<h5> Thomas, Manor Park, London,</h5>
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Thomas was the the leasehold proprietor of a conversion apartment in Manor Park on the market with a lease of fraction over sixty years unexpired. Thomas on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
<h5>Manor Park case:</h5>
<p> Dr S Lambert completed a first floor flat in Manor Park in January 2009. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar properties in Manor Park with an extended lease were worth £280,000. The average ground rent payable was £55 invoiced annually. The lease expiry date was on 24 October 2104. Having 78 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
<div> <h5>Decision in Newham</h5>
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An example of a Lease Extension matter before the tribunal for a Manor Park flat 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 term as at the valuation date was 65.5 years.
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