The market value of Preston Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Preston Park leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her two bedroom flat in Preston Park, Erin commenced the lease extension process as the 80 year threshold was swiftly nearing. The legal work was finalised in November 2009. The landlord’s fees were negotiated to under six hundred pounds.
Last Summer we were contacted by Mr Austin Bell , who moved into a ground floor flat in Preston Park in June 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Preston Park with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 invoiced annually. The lease lapsed on 28 May 2085. Considering the 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus expenses.
Last Christmas we were called by Dr Stanley Brown , who purchased a recently refurbished apartment in Preston Park in October 1998. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Preston Park with an extended lease were worth £255,000. The average amount of ground rent was £50 collected quarterly. The lease ran out on 27 May 2096. Taking into account 71 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.