When it comes to long leasehold property in Prestwich, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Leasehold owners in Prestwich with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has below eighty years left, under the current legislation the landlord can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Prestwich,the lease extension experts 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 Prestwich valuers.
In recent months Aarav, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Prestwich. In buying his home two decades ago, the unexpired term was of no importance. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Aarav was able to extend his lease just under the wire in July. Aarav and the freeholder via the management company in the end settled on sum of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,050.
Last month we were phoned by Mr George Lefèvre , who moved into a garden flat in Prestwich in October 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Prestwich with a long lease were worth £210,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 13 July 2105. Having 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Last year we were e-mailed by Mrs M Laurent , who bought a ground floor apartment in Prestwich in June 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Prestwich with an extended lease were worth £280,000. The average ground rent payable was £45 collected every twelve months. The lease terminated in 2094. Given that there were 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.