When it comes to long leasehold premises in Park Royal, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Anyone in Park Royal with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining 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 many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Park Royal can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Park Royal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Aiden, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Park Royal. Having bought his property two decades ago, the unexpired term was of little relevance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Aiden arranged for a lease extension just ahead of time in August. Aiden and the landlord who owned the flat above eventually settled on sum of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £900.
Mr and Mrs. S Morgan acquired a one bedroom apartment in Park Royal in July 1996. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable flats in Park Royal with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish on 1 September 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.
An example of a Lease Extension decision for a Park Royal premises is 99 Connell Crescent in May 2013. the Tribunal held that the relevant sum for the purposes of the lease extension should be £72,566 to be paid by the leaseholder This case affected 1 flat. The number of years remaining on the existing lease(s) was 28.42 years.