Unfortunately that a Prestwich residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Prestwich property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Prestwich will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| 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 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.
Last October Aiden, started to get close to the 80-year threshold with the lease on his studio apartment in Prestwich. Having bought his property 18 years previously, the lease term was of no interest. Thankfully, he realised he needed to take steps soon on a lease extension. Aiden was able to extend his lease at the eleventh hour in March. Aiden and the landlord ultimately settled on sum of £6,000 . If the lease had slipped to less than eighty years, the sum would have increased by a minimum £1,025.
In 2012 we were e-mailed by Dr Ella Martinez who, having owned a garden flat in Prestwich in July 1998. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar flats in Prestwich with 100 year plus lease were worth £200,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 18 January 2103. Having 77 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last Summer we were e-mailed by Dr Aaron Roberts , who completed a ground floor apartment in Prestwich in August 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar residencies in Prestwich with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 billed annually. The lease expired on 14 April 2093. Having 67 years left we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.