As the the remaining lease term of a Parsons Green residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Parsons Green will qualify for this right; however a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Parsons Green with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
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 lawyer we work with provide it.
Leo was the the leasehold owner of a conversion apartment in Parsons Green being sold with a lease of fraction over 61 years remaining. Leo on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2010 we were phoned by Mr and Mrs. S Harris who, having purchased a first floor flat in Parsons Green in June 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Parsons Green with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 invoiced monthly. The lease expired on 21 November 2104. Considering the 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
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 unexpired residue of the current lease was 93 years and 162 years.