The value of Parson Cross leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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 experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Parson Cross valuers.
Arthur owned a studio flat in Parson Cross on the market with a lease of just over 59 years unexpired. Arthur informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Mr Jude Davies completed a purpose-built flat in Parson Cross in October 1996. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Parson Cross with a long lease were valued about £265,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease lapsed in 2100. Given that there were 74 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last Summer we were e-mailed by Mr and Mrs. J Petit , who moved into a first floor flat in Parson Cross in July 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Parson Cross with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed in 2080. Considering the 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.