With a domestic leasehold property in Prescot, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Anyone in Prescot with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under 80 years remaining, under the current statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Prescot can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Half a year ago Rory, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Prescot. Having bought his property 18 years previously, the lease term was of minimal concern. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Rory was able to extend his lease just ahead of time in September. Rory and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £925.
Dr U Rivera completed a first floor apartment in Prescot in March 1998. The question was if we could approximate the price would be for a 90 year lease extension. Comparable homes in Prescot with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease finished in 2086. Given that there were 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 exclusive of professional charges.
Dr V Thomas owned a one bedroom apartment in Prescot in March 2008. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparative residencies in Prescot with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed on 17 April 2106. Taking into account 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.