It’s an underpublicised certainty that a Prenton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Prenton property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Prenton will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Prenton with over 100 years outstanding on the lease are sometimes 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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Prenton,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 Prenton valuers.
Logan owned a high value flat in Prenton on the market with a lease of fraction over 72 years remaining. Logan on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Spring we were called by Dr Alicia Scott , who owned a garden apartment in Prenton in April 2003. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical residencies in Prenton with an extended lease were in the region of £246,800. The average amount of ground rent was £60 billed monthly. The lease concluded in 2076. Taking into account 50 years remaining we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus expenses.
Last year we were contacted by Mr and Mrs. M White , who completed a first floor flat in Prenton in June 2009. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Prenton with a long lease were valued around £203,200. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2087. Given that there were 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including legals.