Prescot and Knowlsey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Prescot and Knowlsey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Prescot and Knowlsey you must check if your lease has between 70 and 90 years remaining. There are good reasons why a Prescot and Knowlsey leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you better control over the value of your Prescot and Knowlsey leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her one bedroom apartment in Prescot and Knowlsey, Francesca started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction completed in October 2012. The landlord’s charges were negotiated to about 500 GBP.
Last February we were e-mailed by Ms Charlotte Murphy , who was assigned a lease of a basement apartment in Prescot and Knowlsey in March 1998. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable premises in Prescot and Knowlsey with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish in 2105. Taking into account 79 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. D David who, having moved into a garden flat in Prescot and Knowlsey in May 1998. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Identical premises in Prescot and Knowlsey with a long lease were worth £193,400. The average ground rent payable was £65 collected monthly. The lease ended in 2085. Having 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.