When it comes to residential leasehold premises in Prestbury, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Prestbury with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the current statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Engaging our service gives you better control over the value of your Prestbury leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Sebastian, came seriously close to the 80-year threshold with the lease on his garden apartment in Prestbury. In buying his property two decades ago, the lease term was of little interest. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Sebastian arranged for a lease extension at the eleventh hour last June. Sebastian and the freeholder via the managing agents subsequently settled on an amount of £6,000 . If the lease had descended below eighty years, the amount would have increased by at least £1,050.
Last Autumn we were e-mailed by Mr V Rose , who was assigned a lease of a recently refurbished apartment in Prestbury in April 1998. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical premises in Prestbury with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated in 2099. Taking into account 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
In 2012 we were phoned by Dr Mason Martínez who, having purchased a first floor apartment in Prestbury in August 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical properties in Prestbury with a long lease were valued around £264,000. The average ground rent payable was £60 invoiced annually. The lease ended in 2079. Taking into account 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of costs.