With a domestic leasehold premises in Parsons Green, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Residents in Parsons Green with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. When a lease has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancing solicitors 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.
Joseph owned a high value apartment in Parsons Green being sold with a lease of just over fifty eight years unexpired. Joseph informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Joseph to exercise his statutory right. Joseph procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Ms Y González acquired a basement apartment in Parsons Green in November 1997. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar properties in Parsons Green with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease ran out on 19 June 2082. Given that there were 57 years remaining we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.
An example of a Freehold Enfranchisement case for a Parsons Green property 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 remaining number of years on the lease was 93 years and 162 years.