Ealing leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Ealing will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Ealing with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
The conveyancers that we work with handle 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 2014 Jake, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Ealing. In buying his property 19 years ago, the length of the lease was of no concern. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Jake arranged for a lease extension just ahead of time last April. Jake and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he had missed the deadline, the price would have increased by at least £1,150.
Last Summer we were approach by Dr I Green , who purchased a garden apartment in Ealing in May 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable flats in Ealing with a long lease were worth £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease ran out on 28 February 2088. Considering the 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
An example of a Lease Extension case for a Ealing flat is Flat 4 38 The Mall in April 2014. the Tribunal held that the premium payable for the lease extension to be £25,451 This case related to 1 flat. The number of years remaining on the existing lease(s) was 68.7 years.