When it comes to residential leasehold property in Earlsfield, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Earlsfield with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years left, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Earlsfield with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Earlsfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her studio apartment in Earlsfield, Morgan started the lease extension process as the 80 year mark was quickly approaching. The transaction was finalised in February 2008. The freeholder’s costs were negotiated to approximately 500 pounds.
Last Autumn we were phoned by Mr and Mrs. M Parker , who moved into a basement flat in Earlsfield in September 2007. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Earlsfield with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish on 18 March 2096. Having 70 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
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 number of years remaining on the existing lease(s) was 70.57 years.