Unfortunately that a Parbold residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Parbold property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Parbold will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| TSB | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Parbold 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 lawyer we work with provide it.
Leon owned a studio apartment in Parbold being sold with a lease of just over fifty eight years left. Leon on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were called by Mr and Mrs. E Clark who, having took over the lease of a ground floor flat in Parbold in March 2005. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable residencies in Parbold with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish on 14 June 2099. Considering the 73 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Dr Y Garcia bought a basement apartment in Parbold in February 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Parbold with a long lease were worth £240,600. The average ground rent payable was £65 collected per annum. The lease ran out in 2088. Given that there were 62 years outstanding we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including professional charges.