The market value of a leasehold property in West Ealing is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year mark. Statute entitles West Ealing qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in West Ealing with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Santander |
Irrespective of whether you are a tenant or a landlord in West Ealing,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Ealing valuers.
In recent months Cameron, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in West Ealing. In buying his home twenty years ago, the lease term was of minimal concern. by good luck, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Cameron extended the lease at the eleventh hour last June. Cameron and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £925.
In 2011 we were called by Dr T Ward who, having moved into a one bedroom flat in West Ealing in September 2007. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in West Ealing with an extended lease were valued around £275,000. The average amount of ground rent was £45 collected quarterly. The lease ended in 2095. Having 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a West Ealing property 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 unexpired term as at the valuation date was 72.39 years.