The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Preston Park can extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Preston Park lease extension. Putting off the costs now simply increases the price you will eventually be required to pay for a lease extension.
Leasehold residencies in Preston Park with in excess of 100 years outstanding 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Preston Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Preston Park valuers.
Jason owned a studio flat in Preston Park on the market with a lease of a little over 59 years unexpired. Jason informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and secured an acceptable deal informally and readily saleable.
Last year we were contacted by Mr and Mrs. P Mason , who took over the lease of a ground floor apartment in Preston Park in April 2012. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical residencies in Preston Park with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 21 February 2104. Given that there were 78 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
Mr and Mrs. R Campbell was assigned a lease of a basement apartment in Preston Park in July 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Preston Park with a long lease were valued around £186,000. The mid-range ground rent payable was £65 invoiced monthly. The lease elapsed on 1 June 2084. Taking into account 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including expenses.