On the balance of probabilities if you own a flat in East Sheen you actually own a long leasehold interest over your property
Leasehold residencies in East Sheen with more than one hundred years left 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
The lawyers that we work with procure East Sheen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted correspondence with the landlord of her first floor flat in East Sheen, Melissa started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The legal work was concluded in January 2008. The landlord’s fees were restricted to slightly above 650 GBP.
In 2012 we were called by Mr and Mrs. H Jackson who, having was assigned a lease of a ground floor flat in East Sheen in July 1996. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in East Sheen with an extended lease were worth £208,200. The average amount of ground rent was £65 billed yearly. The lease terminated on 1 September 2082. Taking into account 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.
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 related to 3 flats. The remaining number of years on the lease was 66.25 years.