Why you should commence your Park Royal lease extension

Main reasons to commence your Park Royal lease extension today:

A Park Royal lease depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Park Royal residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Park Royal property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Most flat owners in Park Royal will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

Leasehold premises in Park Royal with in excess of 100 years left 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to loan monies with a short lease

Mortgage companies are tightening their criteria and many now require flats to have at least sixty if not seventy years left at the end of the mortgage. As a number of flats in Park Royal were created in the fifties, sixties and seventies this means many now need to be extended if they wish to obtain a mortgage.

Get in touch with one of our Park Royal lease extension solicitors or enfranchisement solicitors

Using our service gives you enhanced control over the value of your Park Royal leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Park Royal Lease Extension Example Cases:

Ali, Park Royal, North West London,

Ali owned a 2 bedroom flat in Park Royal being marketed with a lease of a few days over 61 years unexpired. Ali informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Park Royal case:

In 2014 we were phoned by Mr M Ali who, having took over the lease of a ground floor flat in Park Royal in January 1995. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Park Royal with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease terminated on 9 January 2087. Taking into account 61 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus fees.