With a long leasehold property in Elm Park, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Elm Park 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 current statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Yorkshire 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. |
Lease extensions in Elm Park can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 Elm Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her ground floor apartment in Elm Park, Laura commenced the lease extension process as the eighty year mark was rapidly coming. The lease extension completed in November 2007. The landlord’s charges were negotiated to about 550 pounds.
In 2012 we were e-mailed by Mr R Torres who, having purchased a basement flat in Elm Park in April 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable premises in Elm Park with a long lease were valued around £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease expired in 2103. Taking into account 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension case 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 unexpired lease term was 57.5 years.