Why you should start your Parsons Green lease extension

Top reasons for lease extension now:

Increase your lease and increase your Parsons Green property value

Unfortunately that a Parsons Green residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Parsons Green property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Parsons Green will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

Parsons Green property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.

Lenders may decide not to loan monies on a short lease

The trend since 2008 has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Parsons Green lease extension solicitors or enfranchisement solicitors

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.

Parsons Green Lease Extension Case Summaries:

Emily, Parsons Green, West London,

In the wake of 9 months of unsuccessful discussions with the landlord of her garden apartment in Parsons Green, Emily commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was concluded in February 2006. The landlord’s charges were restricted to under 650 pounds.

Parsons Green case:

In 2009 we were approached by Mrs F Vincent who, having bought a one bedroom flat in Parsons Green in April 2000. The question was if we could estimate the price could be for a ninety year lease extension. Identical residencies in Parsons Green with a long lease were valued about £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease termination date was in 2077. Taking into account 51 years remaining we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including costs.