Earlsfield leases on residential properties are gradually losing 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. Most owners of residential leasehold property in Earlsfield enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Earlsfield you must see if your lease has between 70 and 90 years left. There are compelling reasons why a Earlsfield flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Earlsfield 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.
Subsequent to protracted correspondence with the landlord of her two bedroom apartment in Earlsfield, Maisie commenced the lease extension process as the 80 year threshold was fast advancing. The legal work completed in January 2007. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were approach by Dr H Nguyen , who acquired a one bedroom apartment in Earlsfield in January 1996. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical homes in Earlsfield with 100 year plus lease were valued about £189,000. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated on 13 June 2079. Considering the 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Earlsfield residence 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 unexpired term was 70.57 years.