Unfortunately that a Prescot residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Prescot property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Prescot will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Prescot with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers 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 conveyancing solicitor we work with provide it.
During the course of the last few months Ollie, came dangerously close to the 80-year mark with the lease on his garden apartment in Prescot. Having bought his flat 19 years ago, the unexpired term was of minimal importance. Luckily, he recognised he needed to take steps soon on a lease extension. Ollie extended the lease just ahead of time last May. Ollie and the freeholder via the managing agents eventually agreed on the final figure of £5,000 . If he had missed the deadline, the price would have increased by at least £875.
In 2013 we were approached by Mrs Laura Petit who, having bought a first floor apartment in Prescot in February 2002. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar properties in Prescot with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2099. Given that there were 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Last July we were phoned by Dr D Miller , who took over the lease of a purpose-built apartment in Prescot in September 2012. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Prescot with an extended lease were valued around £235,600. The mid-range ground rent payable was £60 invoiced yearly. The lease end date was in 2088. Taking into account 62 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.