Preston Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Preston Park tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Preston Park you really ought to check if your lease has between 70 and ninety years remaining. There are good reasons why a Preston Park leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Preston Park with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Preston Park can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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.
Tommy owned a high value apartment in Preston Park being marketed with a lease of fraction over sixty years unexpired. Tommy informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen 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 £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2010 we were contacted by Mr Caleb Miller who, having took over the lease of a one bedroom flat in Preston Park in July 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Preston Park with a long lease were in the region of £245,000. The average ground rent payable was £50 collected yearly. The lease finished in 2093. Having 68 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2012 we were contacted by Mr and Mrs. T Martínez who, having was assigned a lease of a recently refurbished apartment in Preston Park in October 2009. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Preston Park with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2104. Taking into account 79 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.