When it comes to residential leasehold premises in East Sheen, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Leasehold owners in East Sheen with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below eighty years left, under the relevant statute the freeholder can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a freeholder in East Sheen,the lease extension experts 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 East Sheen valuers.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her studio apartment in East Sheen, Sophie started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was finalised in June 2014. The landlord’s charges were negotiated to a tad over 700 GBP.
In 2010 we were e-mailed by Mr and Mrs. R Murphy who, having took over the lease of a first floor flat in East Sheen in March 1999. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable flats in East Sheen with a long lease were valued around £280,000. The average ground rent payable was £55 billed yearly. The lease concluded on 21 May 2103. Considering the 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
An example of a Freehold Enfranchisement case for a East Sheen property is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case affected 3 flats. The unexpired term was 66.25 years.