Parkstone leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Parkstone will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Parkstone with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 obtain professional help from a conveyancer and surveyor 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 a wealth of experience 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.
After unsuccessful negotiations with the landlord of her basement flat in Parkstone, Chelsea initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction completed in November 2008. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were contacted by Mr and Mrs. V Morris , who owned a first floor apartment in Parkstone in June 1996. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Parkstone with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 billed annually. The lease ran out on 7 June 2076. Having 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.
Last Christmas we were e-mailed by Mr and Mrs. Y González , who completed a one bedroom apartment in Parkstone in May 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Parkstone with 100 year plus lease were worth £208,200. The mid-range amount of ground rent was £65 billed quarterly. The lease finished in 2087. Considering the 61 years remaining we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of fees.