As the length of the unexpired term of a Manor Park residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Manor Park will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Manor Park with in excess of one hundred years remaining on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Manor Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Manor Park valuers.
After lengthy correspondence with the landlord of her ground floor apartment in Manor Park, Chloe initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension completed in May 2014. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. F Scott who, having took over the lease of a studio apartment in Manor Park in February 2004. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar residencies in Manor Park with a long lease were valued around £255,000. The mid-range ground rent payable was £50 billed yearly. The lease ended in 2096. Having 70 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
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 term was 65.5 years.