The re-sale value of a leasehold property in Wembley depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year threshold. Leasehold Reform legislation entitles Wembley qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Wembley 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 conveyancing solicitor we work with provide it.
Half a year ago Joseph, came precariously near to the 80-year threshold with the lease on his studio apartment in Wembley. In buying his flat two decades ago, the unexpired term was of minimal significance. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Joseph extended the lease at the eleventh hour in September. Joseph and the freeholder eventually settled on an amount of £5,000 . If he had missed the deadline, the amount would have gone up by at least £1,025.
Last Autumn we were called by Mr and Mrs. B David , who was assigned a lease of a purpose-built flat in Wembley in June 2002. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Wembley with an extended lease were in the region of £290,000. The average amount of ground rent was £45 billed per annum. The lease concluded on 23 May 2099. Considering the 73 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Lease Extension decision for a Wembley property 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 was in relation to 1 flat. The unexpired term was 74 years.