Main reasons to commence your Ealing lease extension

Top reasons for lease extension now:

A Ealing lease depreciates with the years remaining on the lease.

Ealing leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Ealing enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ealing you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Ealing flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay

Ealing property with a lease extension has roughly the same value as a freehold

Leasehold properties in Ealing with more than one hundred years remaining 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders may not finance a property with a short lease

Lenders are really restricting their approach as regards to properties in Ealing with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus restricting your market.

Get in touch with one of our Ealing lease extension solicitors or enfranchisement solicitors

Using our service will provide you enhanced control over the value of your Ealing leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ealing Lease Extension Case Studies:

Elijah, Ealing, West London

Last Spring Elijah, came very close to the 80-year mark with the lease on his ground floor apartment in Ealing. Having bought his property two decades ago, the unexpired term was of minimal interest. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Elijah was able to extend his lease just ahead of time in January. Elijah and the freeholder via the management company ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £975.

Ealing case:

In 2014 we were contacted by Mr and Mrs. N Moreau who, having completed a ground floor flat in Ealing in January 1996. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Ealing with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced monthly. The lease ended on 21 February 2099. Having 73 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.