As the the remaining lease term of a Elmers End residential lease lessens so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Elmers End will meet the qualifying criteria; however a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 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 property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Using our service gives you increased control over the value of your Elmers End leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jack owned a conversion apartment in Elmers End being sold with a lease of a few days over 59 years unexpired. Jack informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2012 we were e-mailed by Mrs M Smith who, having acquired a basement apartment in Elmers End in January 1995. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Elmers End with an extended lease were worth £191,000. The average amount of ground rent was £65 billed yearly. The lease terminated in 2083. Having 58 years unexpired we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.
An example of a Lease Extension decision for a Elmers End premises 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.