It’s a harsh truth that a Elmswell residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Elmswell property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Elmswell will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Elmswell can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 dealing with 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 discussions with the landlord of her basement flat in Elmswell, Chloe commenced the lease extension process as the 80 year mark was rapidly nearing. The transaction completed in September 2007. The freeholder’s charges were restricted to under 650 GBP.
Mrs K Adams bought a first floor flat in Elmswell in June 2003. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable residencies in Elmswell with an extended lease were valued about £260,200. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 22 July 2092. Taking into account 66 years remaining we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of fees.
Dr A Baker moved into a first floor apartment in Elmswell in August 2003. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative flats in Elmswell with an extended lease were worth £198,800. The average ground rent payable was £55 billed monthly. The lease finished on 10 June 2081. Having 55 years remaining we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.