When it comes to long leasehold property in West Ealing, you effectively rent it for a certain period of time. Modern 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 may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Leasehold owners in West Ealing with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years left, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in West Ealing with over one hundred 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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.
In recent months Jack, came very near to the 80-year threshold with the lease on his two bedroom flat in West Ealing. In buying his home twenty years previously, the length of the lease was of no relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Jack arranged for a lease extension just under the wire last June. Jack and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had fallen below 80 years, the figure would have become more costly by a minimum £875.
Last Christmas we were approach by Mr and Mrs. W Cooper , who owned a one bedroom apartment in West Ealing in May 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in West Ealing with a long lease were worth £191,400. The average amount of ground rent was £55 collected per annum. The lease ran out in 2078. Considering the 54 years remaining we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.
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 remaining number of years on the lease was 72.39 years.