The market value of Park Royal leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Yorkshire 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.|
The conveyancing solicitors that we work with procure Park Royal lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Winter Harrison, came perilously near to the eighty-year threshold with the lease on his purpose- built flat in Park Royal. Having purchased his property two decades ago, the lease term was of no bearing. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Harrison extended the lease just ahead of time in July. Harrison and the landlord subsequently agreed on a premium of £5,500 . If the lease had fallen lower than 80 years, the figure would have gone up by a minimum £1,000.
Mr Owen Davis owned a one bedroom apartment in Park Royal in October 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Park Royal with an extended lease were valued around £216,000. The mid-range amount of ground rent was £60 billed yearly. The lease termination date was in 2079. Having 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal 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.