The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in East Preston can extend the lease for a further 90 years under legislation. Do think carefully before delaying your East Preston lease extension. Shelving that expense now simply increases the premium you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in East Preston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Preston valuers.
After unsuccessful correspondence with the freeholder of her first floor apartment in East Preston, Poppy commenced the lease extension process as the eighty year deadline was swiftly nearing. The transaction completed in January 2014. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. N Martinez , who owned a one bedroom apartment in East Preston in November 2005. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in East Preston with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected every twelve months. The lease expiry date was in 2102. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
In 2009 we were contacted by Dr A Murphy who, having moved into a ground floor flat in East Preston in September 2012. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar flats in East Preston with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 collected monthly. The lease concluded in 2082. Taking into account 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.