The market value of a leasehold property in Parkstone depends on how long the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be finalised prior to the 80 year threshold. Current legislation enables Parkstone qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Virgin |
The conveyancers 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 conveyancing solicitor we work with provide it.
Following lengthy negotiations with the landlord of her first floor flat in Parkstone, Alice initiated the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction was finalised in March 2009. The freeholder’s fees were negotiated to a tad over 600 pounds.
In 2010 we were phoned by Dr W Garcia who, having owned a one bedroom apartment in Parkstone in June 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative homes in Parkstone with a long lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished on 11 April 2099. Taking into account 73 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. F Khan purchased a studio apartment in Parkstone in July 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Parkstone with 100 year plus lease were valued about £264,000. The average amount of ground rent was £60 collected annually. The lease ended in 2079. Taking into account 53 years left we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus expenses.