Presteigne leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Presteigne enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Presteigne you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| Yorkshire Building Society |
Retaining our service gives you increased control over the value of your Presteigne leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold owner of a high value apartment in Presteigne being marketed with a lease of a little over sixty years left. Leon informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2010 we were called by Dr S Robinson who, having purchased a one bedroom apartment in Presteigne in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar premises in Presteigne with an extended lease were in the region of £235,200. The average ground rent payable was £45 collected quarterly. The lease finished on 1 October 2092. Given that there were 66 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Last Summer we were approach by Dr Theo Martínez , who bought a basement apartment in Presteigne in February 2009. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable residencies in Presteigne with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease finished on 13 May 2103. Given that there were 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.