Prestwich leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Prestwich enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Prestwich you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Prestwich with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society |
Irrespective of whether you are a tenant or a landlord in Prestwich,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Prestwich valuers.
Two years ago Oliver, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Prestwich. Having purchased his property 19 years ago, the length of the lease was of no bearing. Thankfully, he recognised he needed to take steps soon on a lease extension. Oliver arranged for a lease extension at the eleventh hour last July. Oliver and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £975.
In 2011 we were called by Mrs S Bailey who, having took over the lease of a one bedroom apartment in Prestwich in October 1995. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Prestwich with 100 year plus lease were worth £201,200. The average amount of ground rent was £55 invoiced quarterly. The lease expiry date was on 22 August 2082. Taking into account 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Last month we were contacted by Ms Sophie Young , who moved into a purpose-built flat in Prestwich in September 2007. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar flats in Prestwich with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out on 2 November 2102. Taking into account 76 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.