With a long leasehold premises in Earlsfield, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Earlsfield with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the relevant Act the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Earlsfield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Earlsfield valuers.
Edward owned a studio flat in Earlsfield being marketed with a lease of just over fifty eight years outstanding. Edward on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. R Phillips completed a studio flat in Earlsfield in June 2009. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparable premises in Earlsfield with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended in 2102. Considering the 76 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
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 affected 2 flats. The unexpired lease term was 70.57 years.