Main reasons to commence your Elm Park lease extension

Why you should commence your Elm Park lease extension today:

A Elm Park lease depreciates with the years remaining on the lease.

Elm Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Elm Park enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Elm Park you must see if your lease has between seventy and 90 years remaining. There are good reasons why a Elm Park leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Elm Park with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Elm Park?

Lease extensions in Elm Park can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 in-depth market knowledge dealing with Elm Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Elm Park Lease Extension Case Studies:

Gabriel, Elm Park, London,

Gabriel was the the leasehold owner of a studio flat in Elm Park being sold with a lease of a little over sixty years outstanding. Gabriel on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

Elm Park case:

In 2009 we were contacted by Dr Omar Clarke who, having moved into a first floor flat in Elm Park in September 1998. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Elm Park with an extended lease were in the region of £270,000. The average ground rent payable was £55 billed annually. The lease expired in 2101. Having 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.