Presteigne leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher premium will be payable. Leasehold owners in Presteigne will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Presteigne with over one hundred years remaining on the lease are sometimes 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 buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
The conveyancers that we work with procure Presteigne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Omar owned a studio flat in Presteigne on the market with a lease of a few days over fifty eight years left. Omar on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr V Brooks owned a recently refurbished flat in Presteigne in May 2008. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Similar flats in Presteigne with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 10 November 2085. Taking into account 59 years remaining we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
In 2013 we were contacted by Mr Dexter Turner who, having owned a purpose-built apartment in Presteigne in March 2005. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Presteigne with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease ran out on 21 May 2096. Taking into account 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.