The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Prescot may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Prescot lease extension. Postponing the costs today simply escalates the price you will ultimately have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Prescot 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.
Jason was the the leasehold owner of a conversion apartment in Prescot on the market with a lease of a little over 61 years remaining. Jason informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jason to exercise his statutory right. Jason procured expert legal guidance and secured satisfactory deal informally and sell the property.
Dr Lucas David moved into a recently refurbished apartment in Prescot in September 2011. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Prescot with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2078. Having 53 years left we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.
Last Christmas we were e-mailed by Dr Muhammad Brooks , who took over the lease of a one bedroom flat in Prescot in September 2007. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Prescot with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 9 February 2098. Given that there were 73 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.