The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Preston Park have the right to extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your Preston Park lease extension. Postponing the costs today simply escalates the premium you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Preston Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Preston Park valuers.
Oliver was the the leasehold owner of a studio apartment in Preston Park on the market with a lease of just over fifty eight years left. Oliver informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Last March we were called by Mr and Mrs. H Gunderson , who moved into a basement flat in Preston Park in July 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Preston Park with 100 year plus lease were valued about £203,200. The average amount of ground rent was £65 billed per annum. The lease ran out on 2 May 2087. Taking into account 61 years as a residual term we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus professional charges.
Last Spring we were e-mailed by Mr and Mrs. H Hernández , who purchased a one bedroom apartment in Preston Park in August 2002. 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. Comparable homes in Preston Park with a long lease were worth £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired in 2098. Taking into account 72 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.