When it comes to long leasehold property in Parkwood Springs, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Parkwood Springs with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When a lease has under 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Parkwood Springs,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Parkwood Springs valuers.
Sebastian owned a conversion flat in Parkwood Springs on the market with a lease of fraction over 61 years unexpired. Sebastian on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Sebastian to invoke his statutory right. Sebastian 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.
Last July we were called by Dr Freddie García , who bought a first floor apartment in Parkwood Springs in January 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar flats in Parkwood Springs with a long lease were valued about £191,400. The average amount of ground rent was £55 collected monthly. The lease ended on 10 April 2080. Considering the 54 years remaining we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including fees.
Last Summer we were approach by Mr I James , who owned a studio flat in Parkwood Springs in May 2000. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar properties in Parkwood Springs with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed in 2100. Considering the 74 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.