West Ealing leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in West Ealing enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in West Ealing you must see if your lease has between 70 and 90 years left. There are compelling reasons why a West Ealing leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 West 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.
Following lengthy discussions with the landlord of her basement apartment in West Ealing, Francesca commenced the lease extension process as the eighty year mark was quickly coming. The legal work was concluded in April 2006. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were phoned by Ms Y Hill , who owned a garden flat in West Ealing in January 1999. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable homes in West Ealing with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out on 24 September 2102. Considering the 77 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a West Ealing residence is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case affected 2 flats. The unexpired term as at the valuation date was 72.39 years.