Chances are that if you own a flat in Parson Cross you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Parson Cross,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Parson Cross valuers.
Last Autumn Matthew, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Parson Cross. In buying his flat twenty years previously, the lease term was of little importance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Matthew arranged for a lease extension just under the wire last August. Matthew and the freeholder ultimately agreed on sum of £6,000 . If the lease had dipped lower than 80 years, the price would have increased by a minimum £925.
Mr Hunter Mason bought a one bedroom apartment in Parson Cross in January 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Similar premises in Parson Cross with 100 year plus lease were worth £261,600. The average ground rent payable was £60 invoiced every twelve months. The lease end date was in 2077. Considering the 52 years left we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including professional charges.
In 2009 we were e-mailed by Mr Isaac Nguyen who, having completed a purpose-built apartment in Parson Cross in August 2007. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparative properties in Parson Cross with an extended lease were worth £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 11 October 2088. Given that there were 63 years left we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus costs.