Parbold leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Parbold will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Parbold with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Jasper owned a conversion flat in Parbold being sold with a lease of a little over sixty years remaining. Jasper informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. W Stewart bought a one bedroom apartment in Parbold in October 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Parbold with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 invoiced every twelve months. The lease concluded in 2094. Considering the 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.
In 2013 we were approached by Mrs Alisha Rodríguez who, having moved into a studio apartment in Parbold in May 2012. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Parbold with 100 year plus lease were valued about £208,600. The average amount of ground rent was £60 invoiced monthly. The lease terminated in 2083. Having 57 years left we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.