It’s a harsh certainty that a West Drayton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the West Drayton property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in West Drayton will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in West Drayton with over 100 years outstanding on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Skipton Building Society | |
| TSB |
Irrespective of whether you are a tenant or a landlord in West Drayton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Drayton valuers.
Last October Alex, came very close to the eighty-year threshold with the lease on his leasehold flat in West Drayton. Having purchased his property 19 years ago, the lease term was of no bearing. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Alex arranged for a lease extension at the eleventh hour in April. Alex and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had dipped below 80 years, the premium would have increased by at least £975.
In 2009 we were e-mailed by Mr Mason Cooper who, having bought a ground floor apartment in West Drayton in January 2008. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar properties in West Drayton with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced quarterly. The lease concluded on 15 March 2080. Given that there were 54 years left we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a West Drayton flat is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case affected 2 flats. The unexpired lease term was 69 years.