There is no doubt about it a leasehold flat or house in Earlsfield is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Earlsfield will qualify for this right; that being said a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Earlsfield with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire Building Society | 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. |
Retaining our service gives you enhanced control over the value of your Earlsfield leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Aaron, came seriously close to the eighty-year threshold with the lease on his basement flat in Earlsfield. Having purchased his home 19 years ago, the unexpired term was of no concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Aaron was able to extend his lease just under the wire last September. Aaron and the landlord ultimately agreed on sum of £6,000 . If he not met the deadline, the price would have escalated by at least £925.
In 2011 we were contacted by Mrs E Evans who, having completed a one bedroom apartment in Earlsfield in January 1999. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Earlsfield with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 collected every twelve months. The lease concluded in 2087. Considering the 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.
An example of a Freehold Enfranchisement decision for a Earlsfield premises 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 residue of the current lease was 70.57 years.