With a domestic leasehold premises in Elm Park, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Elm Park with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Elm Park with more than one hundred years outstanding 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake Elm Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Andrew owned a conversion flat in Elm Park on the market with a lease of a little over 59 years remaining. Andrew informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Dr E Evans owned a ground floor flat in Elm Park in April 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Elm Park with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ended on 1 April 2096. Given that there were 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension case for a Elm Park flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The unexpired term as at the valuation date was 57.5 years.