The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Queen's Park may extend the lease for a further 90 years in accordance with statute. Do give careful consideration before delaying your Queen's Park lease extension. Shelving the costs today simply escalates the premium you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers 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.
Last Christmas Zachary, came very close to the 80-year mark with the lease on his ground floor flat in Queen's Park. In buying his property two decades ago, the length of the lease was of minimal bearing. Thankfully, he realised he needed to take action soon on a lease extension. Zachary extended the lease at the eleventh hour last April. Zachary and the freeholder subsequently agreed on the final figure of £5,000 . If the lease had dipped below eighty years, the figure would have escalated by at least £1,075.
Mr Sebastian Reed acquired a ground floor flat in Queen's Park in January 2011. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Queen's Park with a long lease were worth £260,000. The mid-range ground rent payable was £50 collected monthly. The lease finished on 27 June 2097. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement decision for a Queen's Park residence 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 70.02 years.