Earls Court leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Earls Court will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Earls Court with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Earls Court leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a studio flat in Earls Court being sold with a lease of a few days over fifty eight years outstanding. Jake informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. J Campbell completed a ground floor flat in Earls Court in July 2001. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical homes in Earls Court with an extended lease were worth £183,600. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed on 21 March 2082. Having 57 years remaining we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Earls Court property 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 was in relation to 5 flats. The unexpired residue of the current lease was 38.98 years.