Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Park Hill. Clearly, the length of lease left reduces over time. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Park Hill have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due consideration before delaying your Park Hill lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Park Hill with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Park Hill,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Park Hill valuers.
Half a year ago Alfie, started to get near to the eighty-year threshold with the lease on his garden flat in Park Hill. Having purchased his flat two decades ago, the unexpired term was of little interest. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Alfie was able to extend his lease just under the wire last May. Alfie and the freeholder via the management company ultimately settled on the final figure of £6,000 . If the lease had descended lower than 80 years, the price would have gone up by at least £950.
Last year we were contacted by Ms T Mitchell , who purchased a studio apartment in Park Hill in June 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Park Hill with an extended lease were worth £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed on 19 May 2084. Considering the 59 years remaining we estimated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 not including costs.
Mr T Lee owned a newly refurbished apartment in Park Hill in August 2012. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Park Hill with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out on 28 April 2104. Taking into account 79 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.