The market value of a leasehold property in East Sheen depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Statute entitles East Sheen qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Lease extensions in East Sheen can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring East Sheen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a high value flat in East Sheen being sold with a lease of a few days over 72 years outstanding. Stanley informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2009 we were phoned by Mr E Allen who, having took over the lease of a one bedroom apartment in East Sheen in November 2004. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative homes in East Sheen with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease expired in 2104. Taking into account 78 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a East Sheen premises 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 number of years remaining on the existing lease(s) was 66.25 years.