Preston Park leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Preston Park will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
Lease extensions in Preston Park can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Preston Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her first floor flat in Preston Park, Sian initiated the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was concluded in April 2008. The landlord’s fees were restricted to about 450 GBP.
Last year we were e-mailed by Mr and Mrs. B Rodríguez , who owned a first floor flat in Preston Park in June 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Preston Park with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease elapsed on 10 February 2105. Given that there were 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2013 we were called by Mr and Mrs. B Jackson who, having completed a first floor apartment in Preston Park in March 2007. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative residencies in Preston Park with a long lease were worth £200,800. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish on 8 October 2085. Given that there were 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including expenses.