Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in West Ealing. Clearly, the term of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in West Ealing have the right to extend the lease for a further ninety years under legislation. Please give careful consideration before putting off your West Ealing lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in West Ealing with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with procure 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.
18 months ago Alexander, came perilously close to the eighty-year mark with the lease on his first floor apartment in West Ealing. In buying his flat two decades ago, the lease term was of minimal interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Alexander was able to extend his lease at the eleventh hour last August. Alexander and the landlord who owned the flat above in the end settled on sum of £5,500 . If he failed to meet the deadline, the amount would have gone up by at least £900.
Last Winter we were e-mailed by Mr Omar Mitchell , who took over the lease of a basement flat in West Ealing in June 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in West Ealing with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2106. Having 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement case for a West Ealing premises 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 related to 2 flats. The remaining number of years on the lease was 72.39 years.