The market value of a leasehold property in Prenton depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year cut off point. Leasehold Reform legislation entitles Prenton qualifying lessees to an additional term of 90 years over and above the remaining term, at a notional rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Prenton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank |
The lawyers that we work with procure 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 lawyer we work with provide it.
Ben was the the leasehold owner of a 2 bedroom apartment in Prenton on the market with a lease of just over 61 years unexpired. Ben on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Christmas we were e-mailed by Mrs A Edwards , who owned a basement apartment in Prenton in April 2009. The question was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical premises in Prenton with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated on 17 March 2095. Considering the 69 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Last Summer we were approach by Mr and Mrs. M Morris , who took over the lease of a purpose-built flat in Prenton in February 2011. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative flats in Prenton with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated in 2106. Taking into account 80 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.