Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Parsons Green. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Parsons Green have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due attention before putting off your Parsons Green lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Parsons Green with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Virgin |
The lawyers that we work with handle Parsons Green 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 conveyancing solicitor we work with provide it.
In 2014 Muhammad, started to get near to the eighty-year threshold with the lease on his basement flat in Parsons Green. In buying his home 18 years previously, the unexpired term was of no importance. by good luck, he became aware that he needed to take steps soon on a lease extension. Muhammad was able to extend his lease just under the wire last March. Muhammad and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he had missed the deadline, the amount would have increased by a minimum £975.
Mr and Mrs. R Pérez purchased a first floor apartment in Parsons Green in September 2011. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable properties in Parsons Green with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 collected yearly. The lease finished on 2 April 2093. Taking into account 67 years left we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Parsons Green residence is 66 and 66a Wardo Avenue in November 2012. The Tribunal determined that the sum of £8,048 is payable by the Applicants in respect of the price for the freehold of the property This case affected 2 flats. The unexpired residue of the current lease was 93 years and 162 years.