Why you should commence your Parkstone lease extension

Why you should commence your Parkstone lease extension today:

Increase your lease and increase your Parkstone property value

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Parkstone can extend the lease for a further ninety years in accordance with statute. Please think carefully before delaying your Parkstone lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay for a lease extension.

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

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.

Lending institutions may not finance a property with a short lease

The trend since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Parkstone lease extensions?

Retaining our service will provide you increased control over the value of your Parkstone leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Parkstone Lease Extension Case Summaries:

Jodie, Parkstone, Dorset,

After lengthy negotiations with the landlord of her studio flat in Parkstone, Jodie started the lease extension process as the eighty year mark was fast approaching. The lease extension was concluded in May 2010. The landlord’s costs were kept to an absolute minimum.

Parkstone case:

In 2009 we were called by Dr Danielle Nelson who, having was assigned a lease of a ground floor flat in Parkstone in October 1998. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Identical properties in Parkstone with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 billed per annum. The lease concluded on 13 August 2079. Given that there were 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus professional charges.

Parkstone case:

Mr and Mrs. F Gómez was assigned a lease of a studio apartment in Parkstone in November 2000. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Parkstone with a long lease were valued about £225,400. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed in 2090. Taking into account 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.