The nearer a residential lease in Park Royal gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Park Royal will qualify for this right; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Park Royal with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective 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.
Last October Dexter, started to get close to the eighty-year mark with the lease on his ground floor flat in Park Royal. Having purchased his home 19 years ago, the lease term was of minimal bearing. Fortunately, he recognised he needed to take action soon on Extending the lease. Dexter arranged for a lease extension just under the wire last June. Dexter and the freeholder in the end settled on sum of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £975.
Last Spring we were called by Ms Grace Rodríguez , who completed a garden flat in Park Royal in June 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar premises in Park Royal with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected per annum. The lease came to a finish on 18 February 2083. Having 58 years as a residual term we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.
An example of a Lease Extension decision for a Park Royal flat 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 was in relation to 1 flat. The unexpired lease term was 28.42 years.