Parkstone leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, 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 be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Parkstone will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Parkstone with over 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Parkstone,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Parkstone valuers.
Off the back of lengthy discussions with the landlord of her purpose-built flat in Parkstone, Caitlin initiated the lease extension process as the 80 year mark was rapidly advancing. The lease extension completed in April 2011. The freeholder’s charges were restricted to about four hundred pounds.
Dr Charlie François completed a garden apartment in Parkstone in November 1995. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative homes in Parkstone with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2104. Having 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.
In 2009 we were approached by Dr B Cooper who, having purchased a ground floor flat in Parkstone in September 2002. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar homes in Parkstone with an extended lease were in the region of £191,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2084. Having 58 years left we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.