With a long leasehold premises in Prestwich, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Prestwich with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has under 80 years remaining, under the current legislation the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Prestwich can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Prestwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her garden apartment in Prestwich, Samantha started the lease extension process as the 80 year threshold was rapidly approaching. The legal work was finalised in November 2013. The landlord’s charges were restricted to approximately 650 pounds.
Mr N Carter moved into a purpose-built apartment in Prestwich in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Prestwich with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 1 July 2078. Considering the 54 years left we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus professional charges.
In 2011 we were called by Dr C Smith who, having completed a one bedroom flat in Prestwich in August 1997. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Prestwich with a long lease were worth £295,000. The average ground rent payable was £45 invoiced annually. The lease expired in 2098. Having 74 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.