There is no doubt about it a leasehold flat or house in Prestbury is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Prestbury will qualify for this right; however a conveyancer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Prestbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Prestbury valuers.
Half a year ago Joshua, came very near to the 80-year threshold with the lease on his studio flat in Prestbury. Having bought his flat two decades ago, the length of the lease was of no importance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Joshua was able to extend his lease just ahead of time in May. Joshua and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had slipped lower than 80 years, the premium would have become more exhorbitant by at least £1,050.
Last Christmas we were called by Dr E Cooper , who was assigned a lease of a recently refurbished apartment in Prestbury in July 1995. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable premises in Prestbury with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 collected per annum. The lease concluded in 2101. Taking into account 76 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2011 we were contacted by Mr U Lee who, having acquired a studio flat in Prestbury in February 2002. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical properties in Prestbury with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 collected quarterly. The lease elapsed on 12 May 2081. Taking into account 56 years remaining we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus professional charges.