As the the remaining lease term of a Prestwich domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Prestwich will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Prestwich can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Prestwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in Prestwich, Samantha started the lease extension process just as her lease was nearing the crucial 80-year deadline. The transaction was finalised in July 2010. The landlord’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Dexter Cooper who, having bought a newly refurbished flat in Prestwich in July 1995. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical premises in Prestwich with an extended lease were worth £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out on 7 July 2089. Having 64 years unexpired we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including professional charges.
Dr O Mercier took over the lease of a basement flat in Prestwich in May 2003. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Prestwich with 100 year plus lease were worth £189,000. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2078. Given that there were 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.