Park Royal leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Flat owners in Park Royal will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Park Royal with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Park Royal lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Eli, started to get near to the 80-year threshold with the lease on his garden apartment in Park Royal. In buying his home two decades ago, the lease term was of little relevance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Eli was able to extend his lease just under the wire in September. Eli and the freeholder via the management company in the end agreed on a premium of £5,000 . If he not met the deadline, the price would have gone up by at least £1,075.
In 2014 we were e-mailed by Ms T Bennett who, having acquired a studio apartment in Park Royal in July 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Park Royal with a long lease were valued about £191,400. The average amount of ground rent was £55 billed per annum. The lease ran out in 2078. Considering the 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including fees.
An example of a Lease Extension case for a Park Royal premises is 99 Connell Crescent in May 2013. the Tribunal held that the relevant sum for the purposes of the lease extension should be £72,566 to be paid by the leaseholder This case related to 1 flat. The number of years remaining on the existing lease(s) was 28.42 years.