Ealing leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Ealing will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Ealing,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ealing valuers.
Two years ago Daniel, started to get near to the eighty-year threshold with the lease on his first floor flat in Ealing. Having purchased his home two decades ago, the lease term was of no significance. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Daniel was able to extend his lease just under the wire last September. Daniel and the landlord subsequently settled on the final figure of £5,000 . If the lease had gone to less than 80 years, the sum would have increased by at least £850.
In 2012 we were called by Ms C Michel who, having moved into a ground floor apartment in Ealing in August 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Ealing with a long lease were worth £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded in 2102. Taking into account 76 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension decision 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 related to 1 flat. The unexpired term as at the valuation date was 68.7 years.