With a long leasehold property in Ealing, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years remaining. Leasehold owners in Ealing with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has below 80 years left, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Benjamin owned a 2 bedroom flat in Ealing on the market with a lease of a little over sixty years unexpired. Benjamin informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. N Thompson who, having purchased a first floor apartment in Ealing in February 2009. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Ealing with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced monthly. The lease concluded on 4 June 2106. Given that there were 80 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
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 related to 1 flat. The remaining number of years on the lease was 68.7 years.