Prestwich residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord 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.
Ali was the the leasehold owner of a conversion flat in Prestwich being marketed with a lease of fraction over 72 years unexpired. Ali on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2014 we were e-mailed by Dr Kian Williams who, having owned a purpose-built apartment in Prestwich in October 2004. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Prestwich with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 collected monthly. The lease elapsed in 2085. Considering the 59 years remaining we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including expenses.
Mr and Mrs. R Baker moved into a basement apartment in Prestwich in June 2005. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparative residencies in Prestwich with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected quarterly. The lease termination date was on 27 March 2105. Taking into account 79 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £7,600 and £8,800 plus fees.