Ealing leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Ealing will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Ealing with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you enhanced control over the value of your Ealing leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Lewis, came precariously close to the eighty-year threshold with the lease on his garden flat in Ealing. Having purchased his property twenty years previously, the lease term was of minimal bearing. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Lewis extended the lease just under the wire in January. Lewis and the landlord who owned the flat above eventually settled on sum of £6,000 . If the lease had dropped to less than eighty years, the amount would have increased by at least £1,125.
Last Autumn we were called by Dr Max Sánchez , who completed a ground floor apartment in Ealing in May 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Ealing with a long lease were valued about £174,200. The average ground rent payable was £55 collected per annum. The lease expired in 2076. Considering the 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Ealing flat 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 related to 1 flat. The unexpired term was 68.7 years.