With a residential leasehold property in Preston Park, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years remaining. Leasehold owners in Preston Park with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When the lease term has under eighty years left, under the current statute the freeholder can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Preston Park with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Preston 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 conveyancer we work with provide it.
Dexter owned a studio flat in Preston Park on the market with a lease of a little over 61 years left. Dexter informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Mr and Mrs. W Lambert purchased a basement apartment in Preston Park in February 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Preston Park with an extended lease were in the region of £256,600. The average amount of ground rent was £60 invoiced every twelve months. The lease expired in 2077. Given that there were 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.
Last year we were called by Mr and Mrs. F Bennett , who bought a basement apartment in Preston Park in May 2006. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical properties in Preston Park with a long lease were worth £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out in 2088. Taking into account 63 years left we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including costs.