Elm Park leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Elm Park will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Elm Park with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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.
Last year Harrison, came very close to the eighty-year threshold with the lease on his one bedroom flat in Elm Park. In buying his property 18 years ago, the unexpired term was of little importance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Harrison extended the lease just under the wire last April. Harrison and the freeholder eventually settled on a premium of £5,500 . If the lease had slipped lower than 80 years, the price would have increased by at least £875.
Mr and Mrs. G Walker acquired a ground floor apartment in Elm Park in October 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Elm Park with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish in 2076. Given that there were 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including costs.
An example of a Lease Extension decision for a Elm Park property 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 was in relation to 1 flat. The remaining number of years on the lease was 57.5 years.