East Sheen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in East Sheen enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in East Sheen you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a East Sheen leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in East Sheen,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Sheen valuers.
Following lengthy discussions with the freeholder of her leasehold flat in East Sheen, Leah commenced the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension was finalised in September 2007. The landlord’s costs were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. K Robinson , who was assigned a lease of a garden apartment in East Sheen in January 1995. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable homes in East Sheen with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 22 May 2094. Considering the 69 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Freehold Enfranchisement case for a East Sheen flat 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 lease term was 66.25 years.