The only way is down when it comes to Prestwich lease terms. Prestwich properties that have a residual term less than than eighty years will drop in value at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Prestwich with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Prestwich leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her purpose-built flat in Prestwich, Maisie started the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was concluded in September 2014. The landlord’s fees were restricted to slightly above 500 pounds.
In 2009 we were contacted by Mr Connor Dupont who, having bought a basement apartment in Prestwich in June 2006. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Similar flats in Prestwich with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 1 August 2106. Having 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
In 2010 we were e-mailed by Dr George Scott who, having owned a one bedroom apartment in Prestwich in July 2003. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Identical homes in Prestwich with a long lease were valued around £275,000. The average ground rent payable was £45 billed monthly. The lease ran out in 2095. Taking into account 69 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.