Why you should commence your Earls Court lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/earls-court">Earls Court</a> lease depreciates with the years remaining on the lease.
</h4>
<p>
Earls Court leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Earls Court tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Earls Court you must see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Earls Court flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
<h4>Lenders may decide not to issue a mortgage with a short lease</h4> Banks and building societies are really restricting their approach as regards to properties in Earls Court with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing your market.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
</tr>
<tr>
<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
Why use us for your lease extension in Earls Court? </h4>
<p> Retaining our service gives you better control over the value of your Earls Court leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell.
The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Earls Court Lease Extension Case Summaries:
</h4>
<h5> Milo, Earls Court, West London,</h5>
<p>
Milo was the the leasehold owner of a high value apartment in Earls Court on the market with a lease of a little over sixty years unexpired. Milo on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
<h5>Earls Court case:</h5>
<p> Dr O Richardson moved into a ground floor apartment in Earls Court in April 2003. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable homes in Earls Court with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish in 2077. Having 51 years outstanding we estimated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including fees.
<div> <h5>Decision in Kensington and Chelsea</h5>
<p>
An example of a Freehold Enfranchisement case for a Earls Court residence is
5 Wetherby Gardens in June 2014. the Tribunal concluded that the price to be paid for the freehold of the property was £2,369,452.
This case affected 5 flats. The unexpired term was 38.98 years.
</p>
</div>
</div>