The market value of a leasehold property in Preston Park is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed ahead of the eighty year mark. Leasehold Reform legislation enables Preston Park qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Preston Park with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Preston Park valuers.
Following unsuccessful discussions with the landlord of her garden flat in Preston Park, Elizabeth initiated the lease extension process as the eighty year deadline was quickly nearing. The legal work was finalised in February 2007. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Ms Abigail Miller , who moved into a one bedroom flat in Preston Park in June 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Preston Park with a long lease were valued about £168,800. The mid-range ground rent payable was £60 billed per annum. The lease ended on 28 June 2081. Taking into account 55 years outstanding we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.
Last year we were approach by Mr and Mrs. C Bertrand , who was assigned a lease of a studio apartment in Preston Park in September 2005. The question was if we could estimate the price would be for a ninety year lease extension. Comparable properties in Preston Park with a long lease were worth £235,200. The average ground rent payable was £45 billed monthly. The lease terminated in 2092. Taking into account 66 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.