Main reasons to start your Parkstone lease extension

Top reasons for lease extension now:

A Parkstone lease depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Parkstone have the right to extend the lease for a further 90 years under statute. Do give careful consideration before delaying your Parkstone lease extension. Shelving the costs now simply increases the amount you will ultimately have to pay for a lease extension.

Parkstone property with a lease extension is almost the same value as a freehold

Leasehold residencies in Parkstone with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders may not issue a mortgage on a short lease

Most mortgage lenders require a lengthy amount of time remaining on any leasehold residence before they will consider lending on it. Even if you don't require a mortgage, you should be mindful that it is probable that someone wishing to acquire your property in the future might well do, so if they can't get a mortgage, then the market price of the property could suffer. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to lend on

Get in touch with one of our Parkstone lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Parkstone 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 lawyer we work with provide it.

Parkstone Lease Extension Case Summaries:

Megan, Parkstone, Dorset,

Trailing protracted discussions with the freeholder of her basement apartment in Parkstone, Megan commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in March 2015. The freeholder’s fees were restricted to slightly above 500 GBP.

Parkstone case:

Dr U David acquired a one bedroom apartment in Parkstone in April 2011. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparative flats in Parkstone with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expiry date was on 5 May 2095. Taking into account 69 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.

Parkstone case:

Ms Rebecca Richardson acquired a one bedroom flat in Parkstone in January 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Parkstone with an extended lease were worth £285,000. The average amount of ground rent was £55 collected monthly. The lease ended in 2106. Having 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.