West Drayton leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in West Drayton will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in West Drayton,the lease extension experts 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.
Ethan was the the leasehold owner of a high value flat in West Drayton on the market with a lease of just over sixty years outstanding. Ethan informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
In 2009 we were contacted by Dr P David who, having bought a basement flat in West Drayton in June 2006. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar premises in West Drayton with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed yearly. The lease expired on 3 March 2096. Taking into account 70 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.
An example of a Freehold Enfranchisement case 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 term as at the valuation date was 69 years.