The value of West Drayton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in West Drayton,the lease extension lawyers that we work with will always be willing 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.
Ibrahim was the the leasehold proprietor of a studio apartment in West Drayton being marketed with a lease of a little over fifty eight years unexpired. Ibrahim on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Mr Cameron Reed owned a purpose-built apartment in West Drayton in June 2004. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical residencies in West Drayton with a long lease were valued about £183,600. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2082. Given that there were 57 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a West Drayton property 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 term was 69 years.