For anyone whose Preston Park home is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Preston Park with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you increased control over the value of your Preston Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a 2 bedroom flat in Preston Park on the market with a lease of just over sixty years unexpired. Ollie informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. I Jones purchased a garden apartment in Preston Park in August 2011. The question was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical homes in Preston Park with a long lease were in the region of £208,200. The average ground rent payable was £65 collected yearly. The lease expired on 11 March 2085. Given that there were 61 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.
In 2014 we were contacted by Mrs Charlotte Sharif who, having owned a one bedroom apartment in Preston Park in March 2008. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Preston Park with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2096. Considering the 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.