The market 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 expense of extending the lease can increase significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with in excess of 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 residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Queen's Park can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 procuring Queen's Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Jonathan, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Queen's Park. In buying his flat twenty years previously, the lease term was of no importance. Fortunately, he realised he needed to take steps soon on Extending the lease. Jonathan was able to extend his lease at the eleventh hour in May. Jonathan and the freeholder via the management company in the end agreed on the final figure of £6,000 . If the lease had slipped to less than 80 years, the premium would have increased by at least £1,125.
Mr A Mitchell purchased a studio flat in Queen's Park in June 2000. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical premises in Queen's Park with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed annually. The lease lapsed in 2087. Given that there were 63 years remaining we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The unexpired term as at the valuation date was 70.02 years.