On the balance of probabilities if you own a flat in West Ealing you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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.
Riley was the the leasehold owner of a high value apartment in West Ealing on the market with a lease of a little over 59 years remaining. Riley informally spoke with his freeholder a well known Manchester-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 rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. V Wood moved into a garden apartment in West Ealing in February 2003. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in West Ealing with a long lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 9 May 2091. Given that there were 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus 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 affected 2 flats. The unexpired term was 72.39 years.