There is no doubt about it a leasehold flat or house in Parkstone is a wasting asset as a result of the diminishing lease term. Where the lease has, over one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. Most flat owners in Parkstone will qualify for this right; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Parkstone with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service gives you better control over the value of your Parkstone leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David owned a high value apartment in Parkstone on the market with a lease of fraction over 59 years outstanding. David informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were David to exercise his statutory right. David obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2012 we were phoned by Ms P Clark who, having completed a ground floor flat in Parkstone in September 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Parkstone with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected yearly. The lease came to a finish on 10 March 2088. Given that there were 62 years left we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including legals.
Mr and Mrs. E Wood was assigned a lease of a studio apartment in Parkstone in August 1999. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Parkstone with a long lease were valued about £265,000. The average ground rent payable was £50 collected quarterly. The lease expired on 9 August 2099. Having 73 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.