Why you should commence your Elm Park lease extension

Why you should start your Elm Park lease extension today:

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

Elm Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Elm Park tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Elm Park you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Elm Park property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to lend on a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold property. Many will simply refuse lend at all once the residual lease term falls below a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below seventy years as acceptable security. In addition to this being important when selling, it is also relevant where you are seeking to refinance your Elm Park property.

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

The lawyers that we work with undertake 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 lawyer we work with provide it.

Elm Park Lease Extension Example Cases:

Benjamin, Elm Park, London

In 2014 Benjamin, came critically near to the 80-year threshold with the lease on his purpose- built flat in Elm Park. In buying his flat two decades ago, the length of the lease was of little significance. Fortunately, he realised he needed to take steps soon on Extending the lease. Benjamin was able to extend his lease at the eleventh hour in September. Benjamin and the freeholder via the management company in the end settled on sum of £6,000 . If the lease had gone to less than eighty years, the price would have become more exhorbitant by a minimum £1,050.

Elm Park case:

Dr Gabriel Gunderson bought a one bedroom apartment in Elm Park in April 2007. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical premises in Elm Park with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out on 20 June 2102. Having 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.