The market value of Preston Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is below than 80 years
Leasehold premises in Preston Park with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 get professional help from a conveyancing solicitor 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 a wealth of experience dealing with 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.
Subsequent to lengthy negotiations with the landlord of her first floor apartment in Preston Park, Sophia started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction completed in March 2007. The freeholder’s costs were restricted to slightly above 600 GBP.
Last Winter we were phoned by Ms U Morris , who took over the lease of a first floor apartment in Preston Park in June 2001. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparative flats in Preston Park with a long lease were valued around £254,200. The average ground rent payable was £60 collected per annum. The lease end date was on 3 January 2076. Given that there were 51 years as a residual term we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of legals.
In 2012 we were contacted by Mr Milo Stewart who, having completed a ground floor apartment in Preston Park in February 2002. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Preston Park with 100 year plus lease were worth £210,600. The average ground rent payable was £45 collected per annum. The lease ran out on 23 May 2087. Having 62 years remaining we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.