Chances are that if you own a flat in West Ealing you actually own a long leasehold interest over your property
Leasehold residencies in West Ealing with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in West Ealing,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Ealing valuers.
Rory was the the leasehold owner of a conversion apartment in West Ealing being marketed with a lease of just over 61 years remaining. Rory on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr Jonathan Díaz moved into a garden apartment in West Ealing in February 2010. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical premises in West Ealing with an extended lease were worth £250,400. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated in 2090. Given that there were 64 years as a residual term we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal 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.