When it comes to domestic leasehold premises in Earlsfield, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in Earlsfield with a lease nearing 81 years unexpired should seriously think of extending it without delay. When a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Earlsfield with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Earlsfield,the lease extension solicitors 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.
Oliver was the the leasehold owner of a high value apartment in Earlsfield being marketed with a lease of just over 61 years unexpired. Oliver on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last month we were called by Mr and Mrs. K Campbell , who was assigned a lease of a purpose-built flat in Earlsfield in November 2012. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical residencies in Earlsfield with a long lease were valued about £216,000. The average amount of ground rent was £60 billed monthly. The lease concluded on 25 April 2083. Having 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
An example of a Freehold Enfranchisement decision 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 affected 2 flats. The unexpired residue of the current lease was 70.57 years.