Park Royal Lease Extension - Free Consultation

Get a Quote

Before you progress with your lease extension in Park Royal
Get a quote from one of our lease extension experts with over 20 years experience.

Let them guide you for FREE on the various options available to you.

It may end up saving you thousands.

Top reasons for 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 only way is down when it comes to Park Royal lease terms. Park Royal leaseholds that have a lease term shorter than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.

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

Leasehold properties in Park Royal with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies will not issue a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

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

The conveyancers 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 conveyancer we work with provide it.

Park Royal Lease Extension Example Cases:

Elizabeth, Park Royal, North West London,

Off the back of protracted discussions with the freeholder of her basement apartment in Park Royal, Elizabeth started the lease extension process as the 80 year deadline was fast approaching. The lease extension was finalised in October 2014. The landlord’s charges were restricted to slightly above 700 pounds.

Park Royal case:

In 2014 we were approached by Mr E Watson who, having moved into a one bedroom apartment in Park Royal in February 2007. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable properties in Park Royal with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 collected annually. The lease ran out in 2099. Given that there were 74 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.

Decision in Ealing

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.