It’s an underpublicised certainty that a Prestbury residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Prestbury property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Prestbury will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Prestbury with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Prestbury,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 in-depth market knowledge and the close ties they enjoy with Prestbury valuers.
During the course of the last few months Tommy, came precariously near to the eighty-year threshold with the lease on his studio apartment in Prestbury. Having purchased his home two decades ago, the lease term was of little bearing. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Tommy arranged for a lease extension just under the wire in May. Tommy and the freeholder in the end settled on the final figure of £6,000 . If the lease had dropped below eighty years, the premium would have increased by at least £1,075.
Dr Kirsty Collins owned a first floor apartment in Prestbury in August 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Prestbury with an extended lease were worth £246,800. The average ground rent payable was £60 invoiced every twelve months. The lease ended in 2076. Considering the 50 years left we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 not including costs.
Last Spring we were contacted by Mrs Kate Peterson , who acquired a one bedroom flat in Prestbury in February 2011. The question was if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Prestbury with an extended lease were valued around £208,200. The mid-range amount of ground rent was £65 billed per annum. The lease terminated in 2087. Taking into account 61 years unexpired we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.