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. Legislation has been in place for sometime now which permits qualifying Presteigne residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Presteigne you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 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. |
Using our service will provide you better control over the value of your Presteigne leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy was the the leasehold owner of a high value flat in Presteigne on the market with a lease of fraction over 72 years remaining. Teddy informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Dr Y Peterson purchased a first floor apartment in Presteigne in March 2012. The question was if we could estimate the price could be for a ninety year lease extension. Comparative premises in Presteigne with 100 year plus lease were in the region of £256,600. The average ground rent payable was £60 invoiced yearly. The lease lapsed in 2078. Given that there were 52 years left we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 plus expenses.
Last Summer we were phoned by Mr Aaron Rodríguez , who owned a one bedroom flat in Presteigne in November 2000. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Presteigne with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 collected quarterly. The lease concluded in 2089. Having 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.