The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Parkstone have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Parkstone lease extension. Putting off that expense today simply increases the amount you will eventually be required to pay to extend the lease.
Leasehold residencies in Parkstone with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Parkstone can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Parkstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the landlord of her ground floor apartment in Parkstone, Rebecca commenced the lease extension process as the eighty year deadline was rapidly advancing. The legal work was finalised in April 2007. The landlord’s costs were kept to an absolute minimum.
In 2014 we were called by Mrs V Fournier who, having owned a first floor flat in Parkstone in November 1998. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative properties in Parkstone with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended on 9 May 2096. Having 70 years outstanding we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 plus fees.
Ms Katie Walker completed a basement flat in Parkstone in May 2010. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical premises in Parkstone with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 billed quarterly. The lease ended in 2076. Considering the 50 years remaining we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including expenses.