Prestwich leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Prestwich will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
The lawyers that we work with undertake Prestwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Milo owned a high value apartment in Prestwich on the market with a lease of fraction over 72 years outstanding. Milo informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Winter we were approach by Mr and Mrs. Y Martin , who took over the lease of a recently refurbished apartment in Prestwich in January 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Prestwich with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded in 2091. Taking into account 65 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus legals.
Last Winter we were phoned by Dr George García , who moved into a one bedroom flat in Prestwich in June 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical premises in Prestwich with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 23 October 2081. Given that there were 55 years left we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.