The re-sale value of a leasehold property in East Sheen depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year mark. Statute enables East Sheen qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in East Sheen can be a difficult process. We recommend you obtain 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 in-depth market knowledge dealing with 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.
In the wake of eight months of lengthy negotiations with the landlord of her ground floor apartment in East Sheen, Erin commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension completed in May 2013. The freeholder’s charges were restricted to below 550 GBP.
Dr Jordan White took over the lease of a one bedroom apartment in East Sheen in October 2006. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in East Sheen with an extended lease were valued about £275,000. The average ground rent payable was £55 collected yearly. The lease finished on 17 April 2101. Taking into account 76 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a East Sheen residence 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 related to 3 flats. The remaining number of years on the lease was 66.25 years.