The re-sale value of a leasehold property in Elm Park depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation enables Elm Park qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Elm Park with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Elm Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Elm Park valuers.
During the course of the last few months Blake, started to get near to the eighty-year mark with the lease on his basement apartment in Elm Park. In buying his property two decades ago, the unexpired term was of little concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Blake extended the lease just in the nick of time in April. Blake and the freeholder via the managing agents eventually settled on a premium of £5,500 . If he failed to meet the deadline, the price would have increased by at least £975.
Last month we were called by Mr and Mrs. N Rose , who bought a newly refurbished flat in Elm Park in January 2006. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Elm Park with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 collected every twelve months. The lease finished on 20 September 2090. Having 65 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
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 related to 1 flat. The unexpired term was 57.5 years.