For anyone whose Earls Court home is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold properties in Earls Court with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Santander |
Lease extensions in Earls Court can be a difficult process. We recommend you obtain guidance from a lawyer 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 dealing with 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.
Last Christmas Alexander, started to get close to the eighty-year mark with the lease on his purpose- built flat in Earls Court. Having bought his property two decades ago, the length of the lease was of no interest. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Alexander arranged for a lease extension at the eleventh hour last April. Alexander and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £950.
Last month we were phoned by Mr and Mrs. F Lewis , who completed a garden apartment in Earls Court in March 2010. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Earls Court with 100 year plus lease were worth £203,200. The average amount of ground rent was £65 collected per annum. The lease lapsed on 6 June 2087. Taking into account 61 years remaining we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 affected 5 flats. The unexpired residue of the current lease was 38.98 years.