When it comes to domestic leasehold property in Park Hill, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Anyone in Park Hill with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years outstanding, under the relevant Act the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Park Hill,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Park Hill valuers.
Two years ago Henry, came very close to the 80-year threshold with the lease on his basement apartment in Park Hill. Having purchased his home two decades ago, the length of the lease was of little bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Henry extended the lease just ahead of time last September. Henry and the freeholder in the end settled on a premium of £6,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,100.
In 2013 we were e-mailed by Mr F Pérez who, having bought a ground floor apartment in Park Hill in March 2009. We are asked if we could estimate the price could be for a ninety year lease extension. Similar properties in Park Hill with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out in 2106. Given that there were 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Mr and Mrs. D Bailey purchased a one bedroom apartment in Park Hill in May 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Similar homes in Park Hill with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed yearly. The lease termination date was in 2095. Having 69 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.