With a long leasehold property in Elmers End, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Elmers End with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant statute the landlord can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Elmers End with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Elmers End 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.
Last year Seth, came very close to the 80-year threshold with the lease on his first floor flat in Elmers End. In buying his flat two decades ago, the length of the lease was of minimal relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Seth was able to extend his lease at the eleventh hour in March. Seth and the landlord ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have gone up by at least £1,050.
Last Spring we were contacted by Mr and Mrs. Y Morel , who bought a studio flat in Elmers End in October 2009. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Elmers End with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 7 August 2095. Taking into account 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension case for a Elmers End flat is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case affected 1 flat. The unexpired term as at the valuation date was 26.38 years.