Top reasons for The Park lease extension

Top reasons for lease extension now:

Increase your lease and increase your The Park property value

The only way is down when it comes to The Park lease terms. The Park properties that have a remaining term fewer than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will increase.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to finance a property with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This will be problematic once you come to market or refinance your property as it will be effectively unmortgageable. You might have no imminent desire to sell but when you do your buyer will have to wait a couple of years before being able to commence the legal procedures for a lease extension.

Get in touch with one of our The Park lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake The 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 conveyancer we work with provide it.

The Park Lease Extension Case Studies:

Jake, The Park, Nottinghamshire

Last year Jake, came seriously close to the 80-year mark with the lease on his studio apartment in The Park. In buying his flat 19 years previously, the unexpired term was of little concern. by good luck, he realised he needed to take steps soon on a lease extension. Jake was able to extend his lease just in the nick of time last April. Jake and the landlord ultimately agreed on the final figure of £5,500 . If he not met the deadline, the sum would have gone up by at least £950.

The Park case:

Mrs C Stewart acquired a newly refurbished flat in The Park in July 2005. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in The Park with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 5 September 2081. Having 55 years as a residual term we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including professional charges.

The Park case:

In 2009 we were approached by Mr K André who, having was assigned a lease of a newly refurbished apartment in The Park in May 2003. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in The Park with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 billed yearly. The lease elapsed on 20 October 2101. Given that there were 75 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.