Main reasons to start your Park Hill lease extension

Why you should start your Park Hill lease extension today:

Increase your lease and increase your Park Hill property value

Park Hill leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Park Hill will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not issue a mortgage on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Park Hill?

Regardless of whether you are a tenant or a freeholder in Park Hill,the lease extension solicitors 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.

Park Hill Lease Extension Example Cases:

Reuben, Park Hill, South Yorkshire

In recent months Reuben, came perilously close to the 80-year threshold with the lease on his first floor apartment in Park Hill. Having purchased his home twenty years ago, the unexpired term was of no significance. by good luck, he realised he needed to take steps soon on a lease extension. Reuben was able to extend his lease at the eleventh hour last June. Reuben and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,050.

Park Hill case:

Mr Blake Davies was assigned a lease of a ground floor apartment in Park Hill in January 2003. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar flats in Park Hill with a long lease were worth £196,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended on 2 September 2080. Taking into account 54 years outstanding we calculated the premium to the freeholder to extend the lease to be between £35,200 and £40,600 not including costs.

Park Hill case:

In 2014 we were phoned by Dr V François who, having acquired a ground floor flat in Park Hill in November 2003. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Park Hill with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected quarterly. The lease ran out in 2100. Taking into account 74 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.