The closer a domestic lease in Wembley nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Wembley will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Wembley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 dealing with Wembley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Lewis, came precariously near to the eighty-year mark with the lease on his one bedroom flat in Wembley. In buying his property 18 years ago, the lease term was of minimal relevance. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Lewis extended the lease just under the wire in April. Lewis and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,125.
Mr and Mrs. M Brooks took over the lease of a purpose-built apartment in Wembley in May 2004. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar flats in Wembley with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish in 2106. Considering the 80 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
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 was in relation to 1 flat. The unexpired lease term was 74 years.