The only way is down when it comes to Parsons Green lease terms. Parsons Green properties that have a residual term fewer than 80 years will drop in value even faster, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Parsons Green leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ryan, started to get close to the 80-year threshold with the lease on his leasehold flat in Parsons Green. Having bought his property two decades ago, the lease term was of no importance. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Ryan arranged for a lease extension just under the wire in May. Ryan and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If the lease had slid below eighty years, the premium would have gone up by a minimum £925.
Ms E Cox purchased a studio apartment in Parsons Green in June 2012. The question was if we could approximate the price could be to extend the lease by an additional years. Comparable homes in Parsons Green with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease concluded in 2098. Having 72 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Freehold Enfranchisement case for a Parsons Green premises 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 was in relation to 2 flats. The unexpired term as at the valuation date was 93 years and 162 years.