The value of Queen's Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
Leasehold residencies in Queen's Park with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancing solicitors that we work with handle Queen's Park 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.
Trailing unsuccessful correspondence with the freeholder of her basement flat in Queen's Park, Jasmine commenced the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension completed in July 2009. The landlord’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. N Alexander who, having completed a newly refurbished flat in Queen's Park in May 2001. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Similar residencies in Queen's Park with a long lease were worth £200,800. The average amount of ground rent was £65 billed quarterly. The lease ran out on 2 October 2085. Considering the 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Queen's Park premises is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case related to 2 flats. The unexpired lease term was 70.02 years.