Parkwood Springs leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Parkwood Springs residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Parkwood Springs you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Parkwood Springs 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.
During the course of the last few months Owen, started to get close to the eighty-year mark with the lease on his studio flat in Parkwood Springs. In buying his property 19 years ago, the length of the lease was of minimal significance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Owen arranged for a lease extension just under the wire last May. Owen and the landlord eventually agreed on an amount of £5,000 . If the lease had dipped to less than 80 years, the premium would have escalated by a minimum £925.
In 2013 we were e-mailed by Mr and Mrs. J Hall who, having moved into a studio apartment in Parkwood Springs in July 2002. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparative properties in Parkwood Springs with a long lease were valued about £201,200. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed in 2082. Taking into account 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
In 2011 we were approached by Mr and Mrs. H Bernard who, having acquired a ground floor flat in Parkwood Springs in January 2010. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar residencies in Parkwood Springs with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired in 2102. Given that there were 76 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.