As the the remaining lease term of a West Drayton residential lease lessens so does its value and therefore the value of your property. If the lease has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in West Drayton will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in West Drayton with over one hundred years remaining 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 buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with procure West Drayton 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 Seth, came precariously near to the 80-year mark with the lease on his garden flat in West Drayton. Having purchased his property twenty years ago, the lease term was of minimal importance. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Seth arranged for a lease extension at the eleventh hour last March. Seth and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by at least £900.
In 2014 we were approached by Mr Sam Brown who, having acquired a garden apartment in West Drayton in January 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative flats in West Drayton with an extended lease were worth £208,200. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 7 June 2086. Having 61 years unexpired we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a West Drayton premises 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.