Main reasons to commence your Park Royal lease extension

Why you should commence your Park Royal lease extension today:

Increase your lease and increase your Park Royal property value

Park Royal leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Park Royal will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.

Park Royal property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Banks and building societies are really clamping down as regards to properties in Park Royal with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting the amount of prospective purchasers.

What makes us experts in Park Royal lease extensions?

Regardless of whether you are a tenant or a landlord in Park Royal,the lease extension solicitors 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 Royal valuers.

Park Royal Lease Extension Case Summaries:

Nathaniel, Park Royal, North West London,

Nathaniel was the the leasehold proprietor of a 2 bedroom flat in Park Royal being sold with a lease of a little over 59 years unexpired. Nathaniel informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant 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 Nathaniel to invoke his statutory right. Nathaniel procured expert advice and secured an acceptable deal informally and sell the flat.

Park Royal case:

Last March we were contacted by Dr B Sánchez , who bought a basement apartment in Park Royal in January 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Park Royal with 100 year plus lease were in the region of £213,600. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2083. Having 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.