It’s an underpublicised truth that a West Drayton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the West Drayton property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Most flat owners in West Drayton will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
During the course of the last few months Finley, came critically near to the 80-year threshold with the lease on his garden apartment in West Drayton. Having purchased his home 19 years previously, the length of the lease was of little interest. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Finley was able to extend his lease at the eleventh hour in April. Finley and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If the lease had fallen below 80 years, the premium would have gone up by at least £900.
Last Summer we were approach by Mr Kyle François , who owned a recently refurbished flat in West Drayton in July 2012. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in West Drayton with an extended lease were worth £242,600. The average ground rent payable was £45 invoiced per annum. The lease expired on 13 April 2093. Given that there were 67 years left we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus legals.
An example of a Freehold Enfranchisement decision for a West Drayton residence 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 as at the valuation date was 69 years.