The only way is down when it comes to Earlsfield lease terms. Earlsfield flats that have a lease term fewer than 80 years will drop in value even faster, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Earlsfield,the lease extension lawyers 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 recent months Arthur, started to get near to the 80-year threshold with the lease on his leasehold apartment in Earlsfield. In buying his property two decades ago, the length of the lease was of minimal concern. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Arthur arranged for a lease extension at the eleventh hour last July. Arthur and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £1,100.
In 2012 we were phoned by Mr and Mrs. S Gómez who, having purchased a basement apartment in Earlsfield in September 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Earlsfield with a long lease were valued around £243,000. The mid-range ground rent payable was £65 billed yearly. The lease finished on 20 November 2088. Given that there were 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.
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 related to 2 flats. The remaining number of years on the lease was 70.57 years.