The market value of West Ealing leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than eighty years
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers 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 conveyancing solicitor we work with provide it.
Last year Henry, started to get near to the eighty-year mark with the lease on his first floor flat in West Ealing. In buying his property 19 years ago, the lease term was of no significance. As luck would have it, he realised he needed to take action soon on a lease extension. Henry was able to extend his lease at the eleventh hour last May. Henry and the freeholder via the managing agents ultimately agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the figure would have escalated by a minimum £850.
Last year we were approach by Mrs C Moore , who purchased a purpose-built apartment in West Ealing in January 2004. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical properties in West Ealing with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2105. Taking into account 79 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a West Ealing flat 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 was in relation to 2 flats. The unexpired lease term was 72.39 years.