Elm Park leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Elm Park will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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.
16 months ago Max, came critically close to the 80-year threshold with the lease on his ground floor flat in Elm Park. Having purchased his property two decades ago, the length of the lease was of minimal interest. Luckily, he recognised he needed to take steps soon on Extending the lease. Max extended the lease just under the wire in May. Max and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he had missed the deadline, the price would have become more costly by at least £1,150.
Last month we were contacted by Dr P Torres , who moved into a one bedroom flat in Elm Park in August 2004. We are asked if we could approximate the price would be for a ninety year lease extension. Identical properties in Elm Park with a long lease were valued around £245,000. The mid-range amount of ground rent was £45 billed quarterly. The lease came to a finish in 2093. Given that there were 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Elm Park property 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 affected 1 flat. The unexpired lease term was 57.5 years.