The only way is down when it comes to Preston Park lease terms. Preston Park properties that have a residual term less than than eighty years will drop in market price even faster, and the cost of extending your lease will increase.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same 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 in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Preston Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Aiden, came critically close to the 80-year threshold with the lease on his purpose- built flat in Preston Park. Having bought his home 18 years ago, the unexpired term was of little interest. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Aiden arranged for a lease extension at the eleventh hour last April. Aiden and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had slipped lower than eighty years, the sum would have become more costly by a minimum £1,100.
In 2013 we were e-mailed by Mr Alexander Lambert who, having purchased a first floor apartment in Preston Park in September 1996. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar properties in Preston Park with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2100. Having 74 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Last Autumn we were contacted by Ms Kirsty Thompson , who acquired a recently refurbished apartment in Preston Park in August 2007. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar properties in Preston Park with 100 year plus lease were worth £166,400. The average ground rent payable was £60 collected per annum. The lease finished in 2080. Considering the 54 years remaining we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.