The market value of a leasehold property in Prestwich is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised ahead of the 80 year cut off point. Leasehold Reform legislation enables Prestwich qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Prestwich with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancers 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 lawyer we work with provide it.
18 months ago Harrison, started to get near to the 80-year mark with the lease on his studio apartment in Prestwich. In buying his property twenty years ago, the lease term was of minimal relevance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Harrison was able to extend his lease at the eleventh hour last May. Harrison and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,050.
In 2013 we were contacted by Mr L Turner who, having owned a ground floor flat in Prestwich in September 2004. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Prestwich with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 24 August 2089. Having 63 years outstanding we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of legals.
Mr Alfie Lee completed a basement apartment in Prestwich in February 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative properties in Prestwich with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease expired on 7 March 2078. Having 52 years unexpired we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.