With a domestic leasehold premises in Park Royal, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Park Royal with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has under eighty years left, under the current Act the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Park Royal leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.
Last year Charlie, came perilously near to the eighty-year mark with the lease on his one bedroom apartment in Park Royal. In buying his property 19 years previously, the length of the lease was of little relevance. by good luck, he noticed he would imminently be paying an escalated premium for a lease extension. Charlie extended the lease just in the nick of time last March. Charlie and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If he had missed the deadline, the amount would have gone up by at least £1,075.
In 2009 we were called by Dr Daniel Wilson who, having purchased a one bedroom apartment in Park Royal in November 2006. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Park Royal with an extended lease were valued about £174,200. The average ground rent payable was £55 billed every twelve months. The lease came to a finish on 28 October 2076. Considering the 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
An example of a Lease Extension case for a Park Royal property 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 remaining number of years on the lease was 28.42 years.