Preston Park leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher amount will be payable. Flat owners in Preston Park will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Preston Park with over 100 years remaining 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Preston Park,the lease extension lawyers 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 Preston Park valuers.
Alexander owned a high value apartment in Preston Park on the market with a lease of fraction over 59 years outstanding. Alexander on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. V González acquired a first floor apartment in Preston Park in February 2012. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparable residencies in Preston Park with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expiry date was on 8 February 2095. Given that there were 69 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2010 we were approached by Mr and Mrs. U Fournier who, having owned a purpose-built flat in Preston Park in June 1995. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical premises in Preston Park with a long lease were worth £285,000. The average amount of ground rent was £55 billed monthly. The lease ran out on 15 September 2106. Considering the 80 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.