The market value of a leasehold property in Elmers End depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year threshold. Statute enables Elmers End qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Elmers End with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
Engaging our service will provide you better control over the value of your Elmers End leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Andrew, came critically near to the 80-year threshold with the lease on his basement flat in Elmers End. In buying his flat 18 years previously, the unexpired term was of no bearing. by good luck, he became aware that he needed to take steps soon on a lease extension. Andrew was able to extend his lease at the eleventh hour in June. Andrew and the freeholder in the end settled on sum of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £850.
In 2014 we were approached by Mr and Mrs. P Lefèvre who, having acquired a one bedroom apartment in Elmers End in April 2012. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable homes in Elmers End with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease expired in 2082. Given that there were 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including fees.
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 was in relation to 1 flat. The unexpired term was 26.38 years.