When it comes to long leasehold property in Prescot, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Leasehold owners in Prescot with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the current Act the landlord can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Prescot with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you better control over the value of your Prescot leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her purpose-built flat in Prescot, Caitlin started the lease extension process as the 80 year threshold was quickly approaching. The legal work completed in March 2006. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were phoned by Mr and Mrs. F Díaz who, having owned a newly refurbished apartment in Prescot in March 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable properties in Prescot with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 1 October 2083. Having 58 years remaining we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
Mr and Mrs. J Bertrand acquired a first floor apartment in Prescot in October 2001. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable flats in Prescot with a long lease were valued around £205,000. The mid-range ground rent payable was £50 collected yearly. The lease expiry date was in 2104. Given that there were 79 years as a residual term we calculated the premium to the landlord to extend the lease to be within £7,600 and £8,800 plus legals.