The nearer a residential lease in Earls Court nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Earls Court will qualify for this right; however a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Earls Court with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Earls Court leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year David, came dangerously close to the eighty-year threshold with the lease on his studio apartment in Earls Court. In buying his property 18 years previously, the unexpired term was of minimal significance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. David was able to extend his lease just under the wire in January. David and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If the lease had dropped to less than 80 years, the premium would have gone up by a minimum £1,000.
Last Summer we were called by Mr and Mrs. L Petit , who purchased a one bedroom flat in Earls Court in July 1996. We are asked if we could estimate the price could be for a 90 year lease extension. Identical flats in Earls Court with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 billed monthly. The lease concluded on 9 July 2088. Taking into account 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus professional charges.
An example of a Freehold Enfranchisement decision for a Earls Court flat 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 was in relation to 5 flats. The unexpired lease term was 38.98 years.