Ealing leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips under eighty years - otherwise a higher premium will be payable. Leasehold owners in Ealing will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly 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 ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Ealing can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 Ealing lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her basement apartment in Ealing, Nicole initiated the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in May 2015. The landlord’s fees were restricted to less than 650 GBP.
Last Summer we were contacted by Dr T Campbell , who took over the lease of a ground floor flat in Ealing in April 2007. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Ealing with a long lease were in the region of £285,000. The average amount of ground rent was £45 invoiced per annum. The lease ran out in 2096. Taking into account 71 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
An example of a Lease Extension case for a Ealing premises is Flat 4 38 The Mall in April 2014. the Tribunal held that the premium payable for the lease extension to be £25,451 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 68.7 years.