The closer a domestic lease in East Sheen nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in East Sheen will qualify for this right; however a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in East Sheen with in excess of one hundred years left 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your East Sheen leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her studio apartment in East Sheen, Chelsea started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was finalised in September 2012. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were contacted by Mrs Aimee Evans , who purchased a one bedroom apartment in East Sheen in February 2009. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in East Sheen with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected per annum. The lease came to a finish on 16 June 2101. Given that there were 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a East Sheen property is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case was in relation to 3 flats. The unexpired term was 66.25 years.