Main reasons to start 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

The re-sale value of a leasehold property in Park Royal depends on how many years the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed ahead of the eighty year cut off point. Leasehold Reform legislation entitles Park Royal qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Park Royal property with a lease extension has roughly the same value as a freehold

Leasehold premises in Park Royal with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that many flats in Park Royal were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

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

Lease extensions in Park Royal can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.

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 a wealth of experience procuring 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.

Park Royal Lease Extension Example Cases:

Daisy, Park Royal, North West London,

After lengthy correspondence with the freeholder of her purpose-built flat in Park Royal, Daisy commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was finalised in May 2013. The landlord’s costs were negotiated to below 650 pounds.

Park Royal case:

Last Autumn we were called by Dr Ollie Hill , who was assigned a lease of a studio apartment in Park Royal in May 2012. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Park Royal with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 collected monthly. The lease lapsed on 9 May 2095. Taking into account 69 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.