Prescot leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Prescot will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Prescot with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Prescot,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Prescot valuers.
Last Summer Arthur, started to get close to the 80-year mark with the lease on his one bedroom flat in Prescot. In buying his property two decades ago, the length of the lease was of little relevance. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Arthur was able to extend his lease at the eleventh hour in January. Arthur and the freeholder in the end agreed on an amount of £5,000 . If he not met the deadline, the amount would have escalated by at least £1,075.
Mr and Mrs. A David completed a garden flat in Prescot in January 2000. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Prescot with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 billed per annum. The lease expired in 2101. Having 75 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Dr Tia King bought a garden flat in Prescot in September 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Prescot with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated on 20 January 2090. Taking into account 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.