Earlsfield leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Earlsfield will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | 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. |
The lawyers that we work with procure Earlsfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago John, came seriously close to the eighty-year threshold with the lease on his leasehold flat in Earlsfield. In buying his property two decades ago, the length of the lease was of no importance. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. John arranged for a lease extension just in the nick of time last April. John and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had slid to less than 80 years, the price would have increased by a minimum £1,000.
Mr and Mrs. I Brown acquired a garden flat in Earlsfield in September 2012. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Earlsfield with an extended lease were worth £223,400. The average amount of ground rent was £60 billed quarterly. The lease elapsed in 2084. Given that there were 59 years outstanding we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Earlsfield residence is 35 Trewint Street in February 2012. The Tribunal arrived at a premium of £32 425 for the freehold reversion. The matter was transferred back to the court for further consideration which required the applicants pay the premium (less any assessed costs) into court after which the court would execute a transfer of the freehold. This case related to 2 flats. The number of years remaining on the existing lease(s) was 70.57 years.