Parkwood Springs leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Parkwood Springs will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Parkwood Springs with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Parkwood Springs leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the landlord of her leasehold flat in Parkwood Springs, Alexandra initiated the lease extension process just as her lease was approaching the critical 80-year mark. The legal work was concluded in July 2015. The freeholder’s fees were restricted to slightly above 700 pounds.
Last Christmas we were phoned by Ms D Bailey , who purchased a first floor flat in Parkwood Springs in May 1998. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Parkwood Springs with an extended lease were worth £174,200. The average amount of ground rent was £55 billed quarterly. The lease lapsed in 2076. Taking into account 51 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
In 2010 we were called by Mr Leo Robinson who, having purchased a garden apartment in Parkwood Springs in February 1998. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Parkwood Springs with a long lease were in the region of £285,000. The average amount of ground rent was £45 collected quarterly. The lease ran out on 13 June 2096. Having 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.