As the length of the unexpired term of a Parkstone residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Parkstone will qualify for this right; that being said a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you enhanced control over the value of your Parkstone leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy negotiations with the freeholder of her basement flat in Parkstone, Isabella initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction was finalised in March 2008. The landlord’s fees were negotiated to a tad over 550 pounds.
In 2014 we were e-mailed by Dr Archie Ali who, having completed a one bedroom flat in Parkstone in April 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Parkstone with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended on 10 September 2101. Considering the 76 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Mr O Petit was assigned a lease of a basement flat in Parkstone in March 2010. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable residencies in Parkstone with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 collected per annum. The lease expiry date was in 2081. Having 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus costs.