Prestbury leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Prestbury will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Prestbury with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Prestbury can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Prestbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan was the the leasehold owner of a studio apartment in Prestbury on the market with a lease of fraction over 59 years outstanding. Nathan on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Mr and Mrs. L Jones completed a garden apartment in Prestbury in November 1998. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Prestbury with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2089. Taking into account 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
Last October we were phoned by Mr and Mrs. G David , who took over the lease of a studio apartment in Prestbury in July 2004. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparable premises in Prestbury with an extended lease were worth £270,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed in 2100. Considering the 75 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.