Chances are that where you own a flat in Earlsfield you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure 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.
Last October Stanley, came precariously near to the eighty-year mark with the lease on his basement apartment in Earlsfield. Having purchased his home twenty years previously, the length of the lease was of no interest. Thankfully, he noticed he needed to take steps soon on Extending the lease. Stanley arranged for a lease extension just under the wire last January. Stanley and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If the lease had gone lower than eighty years, the premium would have increased by at least £1,075.
Mr and Mrs. E Phillips purchased a basement apartment in Earlsfield in January 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Earlsfield with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease terminated in 2096. Given that there were 71 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
An example of a Freehold Enfranchisement decision for a Earlsfield property 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 was in relation to 2 flats. The unexpired lease term was 70.57 years.