There is no doubt about it a leasehold property in Queen's Park is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a point in time 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 increase markedly the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Queen's Park will qualify for this right; nevertheless a conveyancer can advise if you are eligible for a lease extension. 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 Queen's Park with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The lawyers that we work with procure Queen's Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Alfie, came very close to the 80-year mark with the lease on his first floor flat in Queen's Park. In buying his home 19 years previously, the lease term was of little concern. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Alfie arranged for a lease extension just under the wire last September. Alfie and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,125.
Last Spring we were called by Dr S Murphy , who moved into a ground floor flat in Queen's Park in July 2004. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Queen's Park with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2097. Given that there were 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
An example of a Freehold Enfranchisement case for a Queen's Park residence is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case affected 2 flats. The remaining number of years on the lease was 70.02 years.