The Park leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in The Park will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to follow 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 roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| Santander | |
| Skipton Building Society |
Lease extensions in The Park can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with The Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jason, came precariously close to the eighty-year threshold with the lease on his ground floor apartment in The Park. Having bought his property twenty years previously, the unexpired term was of minimal relevance. by good luck, he noticed he needed to take steps soon on a lease extension. Jason was able to extend his lease at the eleventh hour in April. Jason and the freeholder via the management company eventually settled on a premium of £5,000 . If the lease had slipped below eighty years, the price would have gone up by at least £1,125.
Last Spring we were phoned by Mr and Mrs. B Bonnet , who moved into a first floor flat in The Park in March 2000. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative flats in The Park with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 billed annually. The lease finished on 24 June 2093. Taking into account 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.
In 2012 we were approached by Mr J Reed who, having took over the lease of a studio apartment in The Park in March 2001. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical properties in The Park with an extended lease were valued around £206,200. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2082. Having 56 years left we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.