Prescot leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Prescot will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Off the back of protracted correspondence with the freeholder of her leasehold apartment in Prescot, Isobel initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in May 2012. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. J White , who completed a one bedroom apartment in Prescot in June 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Prescot with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 28 May 2098. Having 72 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2010 we were phoned by Dr Rebecca Roberts who, having was assigned a lease of a first floor flat in Prescot in May 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Prescot with a long lease were worth £233,200. The average ground rent payable was £60 invoiced per annum. The lease expired on 19 February 2087. Considering the 61 years left we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including professional charges.