The re-sale value of a leasehold property in Parsons Green is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised well before the 80 year mark. Leasehold Reform legislation enables Parsons Green qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Parsons Green leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold proprietor of a 2 bedroom flat in Parsons Green being marketed with a lease of fraction over sixty years outstanding. Kyle informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr and Mrs. W Gómez completed a newly refurbished flat in Parsons Green in May 2007. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative properties in Parsons Green with a long lease were in the region of £265,000. The average amount of ground rent was £55 billed annually. The lease lapsed in 2100. Having 74 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
An example of a Freehold Enfranchisement decision 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 number of years remaining on the existing lease(s) was 93 years and 162 years.