With a long leasehold premises in Preston Park, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Residents in Preston Park with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years remaining, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Preston Park with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Preston Park can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 Preston Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her studio flat in Preston Park, Isabelle initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction completed in April 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were approach by Mr and Mrs. H Martinez , who moved into a ground floor flat in Preston Park in January 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Preston Park with a long lease were valued about £191,000. The average amount of ground rent was £65 collected yearly. The lease ended in 2083. Given that there were 58 years outstanding we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.
Last Christmas we were phoned by Ms P Bertrand , who purchased a basement flat in Preston Park in May 2006. We are asked if we could approximate the price could be for a 90 year lease extension. Identical premises in Preston Park with a long lease were in the region of £250,000. The average ground rent payable was £50 collected per annum. The lease expired in 2094. Taking into account 69 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.