With a residential leasehold property in Wythenshawe, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Wythenshawe with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under 80 years remaining, under the current legislation the freeholder can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Wythenshawe with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancers that we work with handle Wythenshawe 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.
In 2014 Lucas, started to get close to the 80-year mark with the lease on his first floor apartment in Wythenshawe. In buying his property two decades ago, the length of the lease was of little bearing. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Lucas was able to extend his lease just in the nick of time last September. Lucas and the landlord in the end settled on an amount of £6,000 . If the lease had slipped lower than 80 years, the sum would have increased by a minimum £925.
In 2011 we were phoned by Mr and Mrs. E Cooper who, having acquired a studio flat in Wythenshawe in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Wythenshawe with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 collected every twelve months. The lease end date was in 2093. Considering the 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2014 we were called by Dr K Lefebvre who, having owned a first floor apartment in Wythenshawe in September 2007. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable residencies in Wythenshawe with 100 year plus lease were worth £285,000. The average ground rent payable was £55 invoiced annually. The lease expired in 2104. Given that there were 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.