The re-sale value of a leasehold property in Prestwich is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year threshold. Leasehold Reform legislation entitles Prestwich qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Prestwich with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with handle 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.
During the course of the last few months Benjamin, came seriously close to the eighty-year mark with the lease on his studio flat in Prestwich. In buying his home twenty years ago, the lease term was of little bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Benjamin arranged for a lease extension just in the nick of time in April. Benjamin and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the price would have become more costly by at least £875.
Last April we were contacted by Mr and Mrs. A David , who bought a one bedroom apartment in Prestwich in August 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical homes in Prestwich with an extended lease were worth £225,800. The average amount of ground rent was £60 collected every twelve months. The lease ended in 2086. Considering the 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £25,700 and £29,600 exclusive of costs.
Mr and Mrs. P Edwards completed a first floor flat in Prestwich in April 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar premises in Prestwich with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 billed per annum. The lease elapsed on 9 August 2106. Having 80 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.