Parsons Green leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Parsons Green will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Parsons Green,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Parsons Green valuers.
Subsequent to lengthy discussions with the landlord of her first floor apartment in Parsons Green, Louise started the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension completed in February 2015. The landlord’s fees were restricted to under 600 pounds.
In 2013 we were e-mailed by Mr and Mrs. E Gómez who, having bought a one bedroom flat in Parsons Green in June 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Parsons Green with 100 year plus lease were valued about £176,200. The average amount of ground rent was £65 billed monthly. The lease end date was in 2081. Considering the 56 years unexpired we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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.