Wembley residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Wembley with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Wembley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the freeholder of her leasehold flat in Wembley, Katie started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction completed in August 2005. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. B Harris , who purchased a studio flat in Wembley in September 2001. The question was if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Wembley with an extended lease were worth £223,400. The average amount of ground rent was £60 billed yearly. The lease came to a finish in 2084. Considering the 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus costs.
An example of a Lease Extension case for a Wembley premises is Ground Floor Flat 79 London Road in September 2012. the Tribunal held that the premium payable for the lease extension should be £7,636 This case affected 1 flat. The unexpired term was 74 years.