Parkstone residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Parkstone leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the freeholder of her basement flat in Parkstone, Chelsea initiated the lease extension process as the eighty year deadline was fast nearing. The legal work completed in July 2015. The landlord’s charges were kept to an absolute minimum.
In 2010 we were approached by Mr Noah Nguyen who, having was assigned a lease of a ground floor apartment in Parkstone in April 1997. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical flats in Parkstone with a long lease were in the region of £275,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed in 2103. Having 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
In 2014 we were approached by Mrs F Flores who, having moved into a purpose-built flat in Parkstone in June 1996. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable flats in Parkstone with a long lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced yearly. The lease end date was on 16 April 2083. Given that there were 57 years left we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.