The market value of Prescot leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Prescot,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Prescot valuers.
Dylan owned a conversion flat in Prescot on the market with a lease of a few days over 72 years unexpired. Dylan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. P Campbell , who bought a basement flat in Prescot in June 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative properties in Prescot with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed yearly. The lease terminated in 2087. Taking into account 61 years left we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including fees.
Dr Megan Collins took over the lease of a one bedroom flat in Prescot in January 1996. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical premises in Prescot with a long lease were worth £166,800. The mid-range ground rent payable was £50 billed per annum. The lease ran out on 16 March 2076. Having 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.