Par leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Par will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| Yorkshire Building Society |
Engaging our service gives you better control over the value of your Par leasehold, as your property will be more valuable and marketable in respect of lease length should you want 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.
Thomas owned a 2 bedroom flat in Par being marketed with a lease of fraction over 61 years outstanding. Thomas on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last September we were contacted by Dr Rachael Taylor , who owned a purpose-built apartment in Par in July 2005. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical flats in Par with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 billed annually. The lease lapsed on 4 March 2080. Given that there were 54 years outstanding we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including legals.
Dr D Torres was assigned a lease of a one bedroom apartment in Par in October 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Par with a long lease were valued about £227,800. The average amount of ground rent was £45 billed annually. The lease termination date was on 27 April 2091. Taking into account 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.