Prestbury leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Prestbury will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Prestbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her purpose-built apartment in Prestbury, Sarah initiated the lease extension process as the 80 year mark was swiftly approaching. The lease extension was concluded in May 2012. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were called by Mr and Mrs. S García , who moved into a garden flat in Prestbury in February 2002. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative properties in Prestbury with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 collected yearly. The lease lapsed in 2087. Considering the 61 years remaining we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of legals.
In 2014 we were approached by Dr F Khan who, having acquired a studio flat in Prestbury in August 2003. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Prestbury with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2098. Taking into account 72 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.