Parkstone leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Parkstone tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Parkstone you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Parkstone flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Parkstone with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Parkstone can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Ben owned a conversion apartment in Parkstone on the market with a lease of a little over fifty eight years unexpired. Ben informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were called by Mr Nathan Rose who, having took over the lease of a garden apartment in Parkstone in November 2003. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Parkstone with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded on 1 July 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.
Last month we were contacted by Dr Alice Vincent , who completed a one bedroom flat in Parkstone in April 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Parkstone with an extended lease were valued about £235,200. The average amount of ground rent was £45 billed quarterly. The lease expired in 2092. Having 66 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.