With a domestic leasehold property in Wembley, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Wembley with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has less than 80 years left, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Wembley with more than 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wembley can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Wembley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Eliot, started to get near to the 80-year mark with the lease on his purpose- built apartment in Wembley. In buying his flat 18 years previously, the unexpired term was of little bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Eliot was able to extend his lease just in the nick of time last May. Eliot and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had slid lower than eighty years, the price would have gone up by a minimum £1,025.
Dr Y Sharif was assigned a lease of a recently refurbished apartment in Wembley in November 1999. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Wembley with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed annually. The lease ended in 2086. Having 60 years outstanding we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including legals.
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 number of years remaining on the existing lease(s) was 74 years.