Unfortunately that a Preston Park residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Preston Park property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Preston Park will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Preston Park with more than 100 years left 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| The Mortgage Works |
Lease extensions in Preston Park can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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.
Alfie owned a 2 bedroom flat in Preston Park on the market with a lease of a few days over 72 years left. Alfie informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last September we were phoned by Mr and Mrs. P Kelly , who took over the lease of a one bedroom flat in Preston Park in July 2000. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar properties in Preston Park with 100 year plus lease were worth £186,000. The average ground rent payable was £65 invoiced quarterly. The lease elapsed in 2084. Having 58 years left we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus expenses.
In 2009 we were e-mailed by Dr Muhammad Fournier who, having acquired a one bedroom flat in Preston Park in March 2003. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable properties in Preston Park with a long lease were worth £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease lapsed on 16 October 2095. Having 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.