When it comes to residential leasehold premises in Earls Court, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Leasehold owners in Earls Court with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has less than eighty years remaining, under the relevant Act the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Earls Court can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Off the back of lengthy correspondence with the freeholder of her first floor flat in Earls Court, Bethan started the lease extension process as the eighty year mark was rapidly nearing. The transaction was finalised in August 2015. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were phoned by Mrs Niamh Morgan who, having moved into a first floor flat in Earls Court in October 2007. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Earls Court with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed every twelve months. The lease terminated on 23 November 2092. Given that there were 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Earls Court premises 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 related to 5 flats. The remaining number of years on the lease was 38.98 years.