With a long leasehold property in Earlsfield, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Earlsfield with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has under eighty years remaining, under the current statute the freeholder can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Lease extensions in Earlsfield can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Earlsfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Theo, started to get near to the eighty-year threshold with the lease on his basement apartment in Earlsfield. In buying his home 19 years previously, the lease term was of no significance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Theo arranged for a lease extension at the eleventh hour last June. Theo and the freeholder subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have increased by at least £975.
In 2011 we were approached by Mr G Lee who, having acquired a garden flat in Earlsfield in April 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable flats in Earlsfield with an extended lease were worth £248,000. The average ground rent payable was £65 billed yearly. The lease concluded in 2085. Given that there were 63 years left we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.
An example of a Freehold Enfranchisement case 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 was in relation to 2 flats. The unexpired lease term was 70.57 years.