Main reasons to commence your Elm Park lease extension

Top reasons for lease extension now:

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

As the the remaining lease term of a Elm Park domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in Elm Park will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Elm Park with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may decide not to grant a mortgage on a short lease

Almost all mortgage companies require a lengthy amount of time remaining on a leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is likely that someone wanting to buy your property in the future might well do, so in the event that they are not able to get a mortgage, then the value of your property will likely suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

Get in touch with one of our Elm Park lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Elm Park,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Elm Park valuers.

Elm Park Lease Extension Case Studies:

Lucas, Elm Park, London

In 2014 Lucas, came perilously near to the 80-year mark with the lease on his basement flat in Elm Park. Having bought his property two decades ago, the length of the lease was of little bearing. by good luck, he realised he would soon be paying an escalated premium for a lease extension. Lucas arranged for a lease extension just in the nick of time last May. Lucas and the freeholder via the managing agents subsequently settled on sum of £6,000 . If the lease had slid to less than 80 years, the sum would have gone up by a minimum £1,075.

Elm Park case:

Last Autumn we were contacted by Mr and Mrs. T Taylor , who owned a purpose-built flat in Elm Park in June 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar flats in Elm Park with 100 year plus lease were valued about £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease termination date was in 2084. Considering the 58 years left we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus professional charges.