The re-sale value of a leasehold property in Earlsfield is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be concluded ahead of the eighty year cut off point. Leasehold Reform legislation entitles Earlsfield qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Earlsfield with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Earlsfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie owned a conversion flat in Earlsfield on the market with a lease of fraction over sixty years remaining. Alfie informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. E Carter purchased a first floor apartment in Earlsfield in October 1995. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Earlsfield with an extended lease were valued around £206,200. The mid-range ground rent payable was £55 billed every twelve months. The lease end date was in 2082. Taking into account 56 years remaining we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus 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 related to 2 flats. The remaining number of years on the lease was 70.57 years.