Stop! Your Lease Extension in Elm Park Could Be FREE

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Many leaseholders in Elm Park are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Elm Park has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Elm Park lease extension

Why you should commence your Elm Park lease extension today:

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

Elm Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of 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 should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Elm Park property with a lease extension has roughly the same value as a freehold

Leasehold premises in Elm Park with over one hundred years left on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not loan monies with a short lease

Almost all banks and building societies insist on a lengthy amount of time left on any leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should be mindful that it is likely that someone intending to purchase your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of the property will likely be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to accept

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Godiva Mortgages 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.

Why use us for your lease extension in Elm Park?

The lawyers that we work with procure 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 lawyer we work with provide it.

Elm Park Lease Extension Case Studies:

Eliot, Elm Park, London

During the course of the last few months Eliot, came critically near to the 80-year threshold with the lease on his two bedroom apartment in Elm Park. Having purchased his home two decades ago, the lease term was of little interest. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Eliot arranged for a lease extension just ahead of time in August. Eliot and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he not met the deadline, the price would have increased by at least £975.

Elm Park case:

In 2010 we were phoned by Mr and Mrs. D Hernández who, having completed a newly refurbished apartment in Elm Park in June 1996. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in Elm Park with a long lease were worth £218,000. The average amount of ground rent was £45 billed monthly. The lease elapsed on 25 May 2089. Given that there were 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.

Decision in Havering

An example of a Lease Extension case 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 unexpired lease term was 57.5 years.