When it comes to long leasehold premises in West Ealing, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in West Ealing with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has less than 80 years left, under the relevant statute the freeholder can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in West Ealing can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring West Ealing lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam owned a high value apartment in West Ealing being marketed with a lease of fraction over sixty years outstanding. Adam informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. N François bought a ground floor flat in West Ealing in October 1998. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable flats in West Ealing with an extended lease were worth £171,800. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2076. Considering the 50 years left we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of 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 residue of the current lease was 72.39 years.