Prescot leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Prescot will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Prescot with more than 100 years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Prescot can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Prescot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Leo, started to get near to the eighty-year threshold with the lease on his first floor flat in Prescot. Having bought his flat two decades ago, the lease term was of no importance. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Leo arranged for a lease extension just under the wire in March. Leo and the freeholder via the management company subsequently settled on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,000.
Mr and Mrs. P Alexander moved into a garden flat in Prescot in March 2004. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical residencies in Prescot with an extended lease were valued about £181,600. The average ground rent payable was £55 collected per annum. The lease elapsed in 2078. Given that there were 52 years left we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.
Last Spring we were approach by Mrs Sophie Brooks , who purchased a first floor flat in Prescot in August 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Prescot with a long lease were worth £285,000. The average amount of ground rent was £45 collected yearly. The lease ran out in 2098. Considering the 72 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.