The nearer a residential lease in Parkstone nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Parkstone will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Parkstone leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold proprietor of a studio apartment in Parkstone on the market with a lease of a little over 72 years unexpired. Gabriel informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2013 we were approached by Mrs M Jackson who, having moved into a purpose-built flat in Parkstone in October 2010. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable premises in Parkstone with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed on 23 July 2096. Considering the 71 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
In 2013 we were phoned by Mr and Mrs. H Flores who, having was assigned a lease of a one bedroom flat in Parkstone in May 1998. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative residencies in Parkstone with an extended lease were valued about £254,200. The average ground rent payable was £60 billed quarterly. The lease expiry date was on 13 February 2076. Taking into account 51 years unexpired we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including costs.