Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Park Hill. Inevitably, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Park Hill have the right to extend the lease for a further ninety years in accordance with statute. You should give careful deliberation before delaying your Park Hill lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Park Hill with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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 |
Regardless of whether you are a tenant or a landlord in Park Hill,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Park Hill valuers.
Trailing lengthy correspondence with the landlord of her leasehold apartment in Park Hill, Natalie started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction completed in April 2005. The landlord’s fees were restricted to a tad over 550 pounds.
Last Christmas we were phoned by Mr and Mrs. N Nelson , who bought a basement flat in Park Hill in March 1999. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable homes in Park Hill with a long lease were worth £233,200. The average ground rent payable was £60 collected annually. The lease ran out on 14 June 2087. Considering the 61 years remaining we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.
Ms Jennifer Ali was assigned a lease of a ground floor flat in Park Hill in April 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Park Hill with 100 year plus lease were valued about £171,800. The average amount of ground rent was £55 billed every twelve months. The lease finished in 2076. Given that there were 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of expenses.