For those whose Preston home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Preston with more than 100 years unexpired on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Preston,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 Preston valuers.
Subsequent to unsuccessful correspondence with the freeholder of her basement flat in Preston, Gemma initiated the lease extension process as the eighty year threshold was quickly coming. The legal work was concluded in July 2014. The landlord’s costs were restricted to a tad over 450 GBP.
Last Christmas we were e-mailed by Mr and Mrs. T Thompson , who was assigned a lease of a one bedroom apartment in Preston in May 2012. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Preston with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed on 18 September 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Preston premises is Ground Floor Flat 79 London Road in September 2012. the Tribunal held that the premium payable for the lease extension should be £7,636 This case related to 1 flat. The unexpired residue of the current lease was 74 years.