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Top reasons for Elm Park lease extension


Main reasons to commence your Elm Park lease extension today:

A Elm Park leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Elm Park domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Elm Park will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Elm Park with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not lend with a short lease

Banks and building societies are distinct in their lending requirements. Some set the bar at seventy five years outstanding on the lease; others may be happy with anything in excess seventy years. Below sixty years, it may be challenging to obtain a mortgage in the first place.

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;
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Elm Park lease extensions?

The conveyancers that we work with handle Elm 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 conveyancing solicitor we work with provide it.

Elm Park Lease Extension Example Cases:

Sophie, Elm Park, London,

Following protracted negotiations with the freeholder of her purpose-built apartment in Elm Park, Sophie started the lease extension process as the 80 year mark was fast advancing. The lease extension completed in November 2014. The freeholder’s charges were negotiated to less than 550 GBP.

Elm Park case:

Mr and Mrs. W Mason moved into a purpose-built apartment in Elm Park in November 2011. We are asked if we could estimate the price would be for a 90 year lease extension. Similar flats in Elm Park with a long lease were worth £246,800. The mid-range ground rent payable was £60 billed annually. The lease expired in 2074. Considering the 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including legals.

Decision in Havering

An example of a Lease Extension matter before the tribunal for a Elm Park flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The remaining number of years on the lease was 57.5 years.