Prescot and Knowlsey leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Prescot and Knowlsey will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, 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. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Prescot and Knowlsey leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her leasehold flat in Prescot and Knowlsey, Amelia initiated the lease extension process as the eighty year deadline was fast coming. The legal work was concluded in February 2008. The freeholder’s charges were kept to an absolute minimum.
Mrs Millie Lefèvre owned a first floor flat in Prescot and Knowlsey in May 1996. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable flats in Prescot and Knowlsey with 100 year plus lease were worth £242,600. The average ground rent payable was £45 billed quarterly. The lease lapsed in 2093. Taking into account 67 years remaining we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including costs.
Last Christmas we were e-mailed by Mr and Mrs. L Nguyen , who was assigned a lease of a one bedroom apartment in Prescot and Knowlsey in February 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Prescot and Knowlsey with an extended lease were valued around £280,000. The average ground rent payable was £55 collected monthly. The lease lapsed on 13 March 2104. Given that there were 78 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.