The 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 materialy once the remaining term is less than eighty years
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Preston Park can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 procuring 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.
Adam owned a studio flat in Preston Park being marketed with a lease of just over 72 years outstanding. Adam on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Winter we were approach by Mrs Gemma Richardson , who completed a studio apartment in Preston Park in April 2009. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Preston Park with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expired on 24 November 2099. Considering the 73 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Last Christmas we were e-mailed by Mr Jason Hill , who moved into a one bedroom flat in Preston Park in March 2000. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable homes in Preston Park with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 billed annually. The lease finished on 24 March 2079. Considering the 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.