The only way is down when it comes to Prestwich lease terms. Prestwich leaseholds that have a residual term lower than 80 years will de-escalate in market price even faster, and the cost to extend your lease will rise.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Prestwich can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Prestwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her one bedroom flat in Prestwich, Gemma commenced the lease extension process as the 80 year mark was fast nearing. The lease extension was finalised in April 2011. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Dr K Wood , who took over the lease of a recently refurbished apartment in Prestwich in April 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Prestwich with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2100. Given that there were 75 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. L Mason acquired a ground floor flat in Prestwich in July 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Prestwich with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2089. Given that there were 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.