Why you should start your West Drayton lease extension

Main reasons to commence your West Drayton lease extension today:

A West Drayton leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in West Drayton is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year cut off point. Current legislation entitles West Drayton qualifying lessees to an additional term of ninety years in addition to the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

West Drayton property with a lease extension has roughly the same value as a freehold

Leasehold properties in West Drayton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not grant a mortgage on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as deficient security.

Get in touch with one of our West Drayton lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in West Drayton,the lease extension solicitors that we work with will always be prepared 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.

West Drayton Lease Extension Case Studies:

Benjamin, West Drayton, West London,

Benjamin owned a studio apartment in West Drayton being sold with a lease of fraction over 61 years unexpired. Benjamin informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.

West Drayton case:

Last Autumn we were phoned by Mr and Mrs. S Rose , who bought a garden flat in West Drayton in September 2004. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar flats in West Drayton with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated on 8 February 2103. Having 77 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.