Elmswell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Elmswell tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Elmswell you must see if your lease has between 70 and ninety years left. There are good reasons why a Elmswell flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Elmswell with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Elmswell can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Elmswell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her ground floor apartment in Elmswell, Ella initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction was concluded in June 2015. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. O Pérez moved into a basement apartment in Elmswell in June 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Elmswell with an extended lease were in the region of £223,400. The average ground rent payable was £60 invoiced monthly. The lease ran out on 12 July 2085. Taking into account 59 years left we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.
Last year we were called by Dr M Martinez , who owned a first floor flat in Elmswell in September 1999. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical homes in Elmswell with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2105. Having 79 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.