Earls Court leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Earls Court will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Earls Court 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Earls Court can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Earls Court lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her first floor apartment in Earls Court, Sarah commenced the lease extension process as the eighty year threshold was quickly advancing. The lease extension completed in August 2008. The landlord’s costs were negotiated to less than 500 pounds.
Last May we were approach by Mr R Hill , who moved into a basement flat in Earls Court in August 2012. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Earls Court with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated on 25 August 2100. Considering the 75 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
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 was in relation to 5 flats. The unexpired residue of the current lease was 38.98 years.