The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in West Drayton can extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your West Drayton lease extension. Postponing that expense today simply increases the price you will eventually have to pay for a lease extension.
Leasehold premises in West Drayton with in excess of 100 years left 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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 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.
Subsequent to lengthy correspondence with the landlord of her ground floor apartment in West Drayton, Gemma initiated the lease extension process as the eighty year mark was fast approaching. The transaction was concluded in October 2013. The freeholder’s fees were negotiated to below 650 pounds.
Last Christmas we were phoned by Mr and Mrs. L Lefebvre , who acquired a purpose-built apartment in West Drayton in November 1995. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable residencies in West Drayton with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish in 2106. Considering the 80 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
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 number of years remaining on the existing lease(s) was 69 years.