Why you should commence your Earls Court lease extension

Why you should start your Earls Court lease extension today:

A Earls Court leasehold property depreciates with the years remaining on the lease.

Earls Court leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Earls Court tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Earls Court you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Earls Court leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay

Earls Court property with a lease extension has roughly the same value as a freehold

Leasehold properties in Earls Court with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may not lend with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This will cause difficulties when you come to market or refinance your flat as it will be practically unmortgageable. Even though you might not have an immediate desire to sell but when you do your buyer must hold off for 2 years before they can exercise the right to a a lease extension.

Get in touch with one of our Earls Court lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you increased control over the value of your Earls Court 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Earls Court Lease Extension Example Cases:

David, Earls Court, West London,

David owned a studio flat in Earls Court being marketed with a lease of a few days over fifty eight years remaining. David on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were David to invoke his statutory right. David procured expert advice and secured an acceptable deal informally and sell the property.

Earls Court case:

Last month we were e-mailed by Ms L Norbert , who owned a one bedroom flat in Earls Court in April 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Earls Court with an extended lease were valued about £227,800. The mid-range amount of ground rent was £45 billed per annum. The lease ran out on 21 September 2091. Considering the 65 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.