Parbold leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Parbold will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service gives you increased control over the value of your Parbold leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Isaac was the the leasehold proprietor of a studio flat in Parbold being marketed with a lease of a little over sixty years unexpired. Isaac informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2013 we were approached by Mrs I Carter who, having was assigned a lease of a garden flat in Parbold in April 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative homes in Parbold with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 invoiced annually. The lease end date was in 2100. Having 75 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. A Ward was assigned a lease of a ground floor apartment in Parbold in March 1998. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Parbold with a long lease were valued about £250,400. The average ground rent payable was £65 collected yearly. The lease termination date was on 20 July 2089. Considering the 64 years unexpired we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of legals.