Main reasons to commence your Parson Cross lease extension

Why you should commence your Parson Cross lease extension today:

A Parson Cross leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Parson Cross residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Parson Cross property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. Most flat owners in Parson Cross will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Parson Cross with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not grant a mortgage with a short lease

Mortgage companies are really clamping down as regards to properties in Parson Cross with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting the amount of prospective buyers.

Get in touch with one of our Parson Cross lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your Parson Cross leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Parson Cross Lease Extension Example Cases:

Tia, Parson Cross, South Yorkshire,

In the wake of 9 months of protracted negotiations with the landlord of her garden flat in Parson Cross, Tia started the lease extension process as the 80 year threshold was swiftly approaching. The legal work completed in February 2008. The freeholder’s charges were restricted to a tad over 600 GBP.

Parson Cross case:

Last Summer we were contacted by Ms E Jackson , who was assigned a lease of a one bedroom flat in Parson Cross in February 2004. The question was if we could estimate the price would be to prolong the lease by ninety years. Similar homes in Parson Cross with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed annually. The lease end date was in 2095. Taking into account 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.

Parson Cross case:

Mrs Morgan Martínez acquired a one bedroom apartment in Parson Cross in March 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Parson Cross with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £55 collected monthly. The lease expired in 2106. Considering the 80 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.