The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Earls Court may extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Earls Court lease extension. Putting off that expense now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold residencies 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 value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 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.
Michael owned a 2 bedroom flat in Earls Court on the market with a lease of fraction over fifty eight years outstanding. Michael on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. S Richardson who, having purchased a garden apartment in Earls Court in June 1999. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Earls Court with a long lease were in the region of £265,000. The average ground rent payable was £50 billed quarterly. The lease ran out on 26 April 2100. Taking into account 74 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
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 lease term was 38.98 years.