Unfortunately that a Wembley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wembley property market.Once your lease gets to 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 slips below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Wembley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 landlord in Wembley,the lease extension lawyers 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 Wembley valuers.
16 months ago Theo, started to get close to the 80-year threshold with the lease on his leasehold apartment in Wembley. Having bought his property two decades ago, the lease term was of little relevance. by good luck, he noticed he needed to take action soon on a lease extension. Theo was able to extend his lease just in the nick of time last January. Theo and the freeholder eventually settled on sum of £5,000 . If the lease had descended to less than 80 years, the amount would have gone up by at least £900.
Mrs O Martinez took over the lease of a ground floor apartment in Wembley in August 2004. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative premises in Wembley with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 billed quarterly. The lease finished in 2079. Having 53 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
An example of a Lease Extension decision for a Wembley residence 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 related to 1 flat. The unexpired term was 74 years.