Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Preston Park. Inevitably, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Preston Park have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Preston Park lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Preston Park with more than 100 years unexpired 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | 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. |
Lease extensions in Preston Park can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Last year Thomas, started to get near to the 80-year threshold with the lease on his studio apartment in Preston Park. In buying his flat two decades ago, the length of the lease was of minimal significance. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Thomas arranged for a lease extension at the eleventh hour last April. Thomas and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had fallen lower than 80 years, the figure would have become more exhorbitant by at least £1,100.
Last Christmas we were e-mailed by Mr Tommy Jones , who completed a garden apartment in Preston Park in January 1997. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Preston Park with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed on 27 May 2094. Considering the 69 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last year we were phoned by Dr Kyle Sánchez , who took over the lease of a first floor apartment in Preston Park in July 1998. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in Preston Park with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2105. Taking into account 80 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.