The value of Par leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than eighty years
Leasehold properties in Par with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Par can be a difficult process. We recommend you get guidance 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 in-depth market knowledge dealing with Par lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold proprietor of a studio flat in Par being marketed with a lease of just over sixty years left. Lucas on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mrs E Smith bought a one bedroom flat in Par in May 2007. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar residencies in Par with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2087. Considering the 61 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus legals.
Last month we were e-mailed by Dr E Mason , who took over the lease of a studio apartment in Par in May 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Par with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2098. Considering the 72 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.