Earlsfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Earlsfield residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Earlsfield you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Earlsfield flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Earlsfield with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Earlsfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Earlsfield valuers.
Trailing protracted correspondence with the freeholder of her basement flat in Earlsfield, Maisie initiated the lease extension process as the eighty year threshold was quickly approaching. The legal work was concluded in July 2009. The landlord’s costs were kept to an absolute minimum.
Last Summer we were approach by Ms Rachel Rogers , who completed a first floor apartment in Earlsfield in May 1997. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative residencies in Earlsfield with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 1 March 2102. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Earlsfield premises 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 unexpired lease term was 70.57 years.