It’s an underpublicised certainty that a Prestwich residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Prestwich property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. Most flat owners in Prestwich will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Prestwich with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Prestwich,the lease extension solicitors that we work with will always be happy 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 the wake of 6 months of lengthy negotiations with the freeholder of her two bedroom flat in Prestwich, Ellie commenced the lease extension process as the 80 year deadline was quickly coming. The legal work was concluded in June 2013. The freeholder’s costs were restricted to a tad over 600 pounds.
In 2013 we were approached by Mr and Mrs. D Mitchell who, having acquired a newly refurbished apartment in Prestwich in July 2005. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Prestwich with a long lease were valued about £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease finished on 15 February 2090. Considering the 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus costs.
Dr Harrison Pérez purchased a purpose-built apartment in Prestwich in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Prestwich with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 collected every twelve months. The lease finished on 11 February 2079. Having 53 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.