With a residential leasehold property in West Drayton, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in West Drayton with a lease drawing near to 81 years left should seriously consider extending it sooner than later. Once a lease has fewer than 80 years remaining, under the current statute the landlord can calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in West Drayton with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant 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; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service will provide you increased control over the value of your West Drayton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jayden, started to get near to the eighty-year mark with the lease on his one bedroom flat in West Drayton. In buying his flat 18 years ago, the length of the lease was of little bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Jayden arranged for a lease extension just ahead of time last August. Jayden and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If the lease had slid lower than 80 years, the figure would have become more exhorbitant by at least £900.
Last Summer we were approach by Dr Noah Collins , who owned a ground floor apartment in West Drayton in August 2000. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in West Drayton with a long lease were valued about £270,000. The average ground rent payable was £55 billed per annum. The lease concluded on 3 November 2100. Considering the 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
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 related to 2 flats. The unexpired term was 69 years.