Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Earlsfield. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Earlsfield have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give due attention before delaying your Earlsfield lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold premises in Earlsfield with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Earlsfield,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Earlsfield valuers.
In the wake of 9 months of lengthy negotiations with the landlord of her two bedroom apartment in Earlsfield, Isabella initiated the lease extension process as the 80 year deadline was swiftly coming. The transaction was concluded in October 2006. The freeholder’s fees were negotiated to under 600 pounds.
Last Spring we were contacted by Mr and Mrs. W Torres , who bought a basement apartment in Earlsfield in February 1999. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in Earlsfield with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected annually. The lease concluded in 2098. Having 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement decision for a Earlsfield premises is 35 Trewint Street in February 2012. The Tribunal arrived at a premium of £32 425 for the freehold reversion. The matter was transferred back to the court for further consideration which required the applicants pay the premium (less any assessed costs) into court after which the court would execute a transfer of the freehold. This case affected 2 flats. The remaining number of years on the lease was 70.57 years.