On the balance of probabilities where you own a flat in Prenton you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Prenton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Prenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months William, started to get near to the eighty-year threshold with the lease on his garden apartment in Prenton. In buying his property two decades ago, the length of the lease was of no concern. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. William was able to extend his lease just in the nick of time in May. William and the landlord ultimately agreed on a premium of £6,000 . If he not met the deadline, the sum would have gone up by at least £925.
Last month we were called by Ms Phoebe Murphy , who purchased a one bedroom apartment in Prenton in February 1998. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Prenton with an extended lease were worth £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease expired in 2101. Given that there were 76 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2009 we were e-mailed by Mr and Mrs. P Laurent who, having owned a newly refurbished flat in Prenton in September 2000. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable flats in Prenton with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 collected annually. The lease ended on 11 June 2081. Considering the 56 years left we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus expenses.