The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Preston can extend the lease for a further ninety years in accordance with statute. Please think carefully before delaying your Preston lease extension. Putting off the costs today simply escalates the price you will eventually have to pay to extend the lease.
Leasehold premises in Preston with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you increased control over the value of your Preston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her purpose-built apartment in Preston, Isabella started the lease extension process as the 80 year deadline was quickly coming. The legal work was concluded in April 2005. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. R Pérez who, having was assigned a lease of a newly refurbished apartment in Preston in January 1999. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparative residencies in Preston with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired in 2098. Taking into account 73 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
An example of a Lease Extension case for a Preston residence is Ground Floor Flat 79 London Road in September 2012. the Tribunal held that the premium payable for the lease extension should be £7,636 This case affected 1 flat. The unexpired term was 74 years.