When it comes to residential leasehold property in Preston Park, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Preston Park with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When a lease has below 80 years remaining, under the current Act the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| Virgin |
Retaining our service will provide you increased control over the value of your Preston Park leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kai owned a studio apartment in Preston Park on the market with a lease of a little over fifty eight years remaining. Kai informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Last year we were contacted by Mr and Mrs. J Norbert , who moved into a one bedroom flat in Preston Park in March 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Preston Park with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed on 2 September 2080. Having 54 years left we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.
In 2014 we were e-mailed by Mr and Mrs. S Baker who, having bought a studio apartment in Preston Park in August 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Preston Park with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 billed every twelve months. The lease lapsed in 2091. Given that there were 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.