The market value of Prenton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than 80 years
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The lawyers that we work with undertake Prenton 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 conveyancing solicitor we work with provide it.
Off the back of lengthy negotiations with the landlord of her leasehold flat in Prenton, Anna started the lease extension process as the 80 year deadline was fast approaching. The legal work was finalised in May 2013. The freeholder’s costs were negotiated to about 650 pounds.
In 2011 we were called by Mr and Mrs. J Morgan who, having took over the lease of a recently refurbished flat in Prenton in March 2006. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Prenton with a long lease were valued around £265,000. The mid-range ground rent payable was £50 billed monthly. The lease concluded on 12 July 2100. Considering the 74 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Last Autumn we were called by Dr V Harris , who bought a garden apartment in Prenton in April 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Prenton with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 collected annually. The lease lapsed on 24 February 2080. Considering the 54 years outstanding we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.