As the the remaining lease term of a Parkstone domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Parkstone will qualify for this right; that being said a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Parkstone with more than 100 years remaining 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Parkstone can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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.
14 months ago Riley, came precariously close to the 80-year mark with the lease on his one bedroom flat in Parkstone. Having purchased his property 19 years ago, the lease term was of little significance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Riley was able to extend his lease just in the nick of time last May. Riley and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had gone to less than 80 years, the amount would have escalated by a minimum £950.
In 2013 we were called by Mrs N Hernández who, having purchased a one bedroom flat in Parkstone in February 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Parkstone with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish on 26 October 2092. Having 68 years unexpired we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of costs.
In 2013 we were called by Dr Samantha Carter who, having completed a one bedroom flat in Parkstone in March 2002. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Parkstone with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed yearly. The lease expired on 9 July 2103. Taking into account 79 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.