On the balance of probabilities if you own a flat in Ealing you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Engaging our service gives you increased control over the value of your Ealing leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a studio flat in Ealing on the market with a lease of a few days over sixty years outstanding. Ollie informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
Last April we were e-mailed by Dr Connor Clark , who took over the lease of a one bedroom apartment in Ealing in April 2007. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Similar residencies in Ealing with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed in 2102. Considering the 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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 unexpired lease term was 68.7 years.