It’s an underpublicised truth that a Parkstone residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Parkstone property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Parkstone will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Parkstone with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Parkstone,the lease extension solicitors that we work with will always be prepared 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.
Following unsuccessful negotiations with the landlord of her studio apartment in Parkstone, Amy commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The legal work completed in April 2009. The freeholder’s fees were restricted to less than 700 GBP.
In 2012 we were called by Mr H Campbell who, having bought a one bedroom apartment in Parkstone in February 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Parkstone with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced yearly. The lease expiry date was in 2106. Having 80 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Ms G Rogers acquired a ground floor apartment in Parkstone in May 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Parkstone with a long lease were worth £200,800. The average amount of ground rent was £65 collected annually. The lease ran out in 2086. Taking into account 60 years remaining we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.