Chances are that if you own a flat in Ealing you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Ealing 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 conveyancer we work with provide it.
Last year Aiden, came precariously near to the 80-year threshold with the lease on his first floor apartment in Ealing. In buying his property two decades ago, the unexpired term was of little bearing. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Aiden arranged for a lease extension just under the wire in September. Aiden and the freeholder eventually agreed on a premium of £6,000 . If he had missed the deadline, the sum would have gone up by at least £1,125.
Last Autumn we were phoned by Mrs R Thomas , who completed a recently refurbished apartment in Ealing in January 1998. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical flats in Ealing with a long lease were valued around £205,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed on 17 June 2104. Considering the 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a Ealing residence 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 affected 1 flat. The number of years remaining on the existing lease(s) was 68.7 years.