Prescot and Knowlsey leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Prescot and Knowlsey will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Retaining our service gives you enhanced control over the value of your Prescot and Knowlsey leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Kai, started to get near to the eighty-year threshold with the lease on his basement flat in Prescot and Knowlsey. In buying his home 18 years previously, the length of the lease was of little significance. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Kai was able to extend his lease just in the nick of time last January. Kai and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have increased by a minimum £850.
Last Spring we were phoned by Mrs G Moore , who acquired a basement flat in Prescot and Knowlsey in November 2003. The question was if we could estimate the premium could be to extend the lease by an additional years. Identical premises in Prescot and Knowlsey with an extended lease were in the region of £173,800. The average amount of ground rent was £60 invoiced per annum. The lease lapsed on 14 September 2081. Taking into account 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
In 2012 we were e-mailed by Mr I Flores who, having moved into a one bedroom apartment in Prescot and Knowlsey in April 2002. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Prescot and Knowlsey with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed every twelve months. The lease came to a finish in 2092. Given that there were 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.