Why you should start your Prestwich lease extension

Why you should commence your Prestwich lease extension today:

A Prestwich leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Prestwich you actually own a long leasehold interest over your property

Prestwich property with a lease extension has roughly the same value as a freehold

Leasehold premises in Prestwich with more than 100 years unexpired 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may not issue a mortgage on a short lease

Almost all mortgage lenders will be unwilling to grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Prestwich property becoming difficult to dispose of or to obtain finance on.

Get in touch with one of our Prestwich lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your Prestwich leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Prestwich Lease Extension Example Cases:

Chelsea, Prestwich, Greater Manchester,

Trailing protracted negotiations with the freeholder of her leasehold apartment in Prestwich, Chelsea initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction completed in June 2008. The freeholder’s fees were kept to an absolute minimum.

Prestwich case:

In 2009 we were called by Mrs Y Clark who, having completed a basement flat in Prestwich in November 2000. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in Prestwich with a long lease were in the region of £270,000. The average amount of ground rent was £65 invoiced per annum. The lease end date was on 14 March 2094. Having 68 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.

Prestwich case:

Mr and Mrs. A Rivera purchased a first floor apartment in Prestwich in September 2005. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical homes in Prestwich with an extended lease were worth £208,600. The average amount of ground rent was £60 billed per annum. The lease ended in 2083. Considering the 57 years left we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.