North Wembley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying North Wembley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in North Wembley you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your North Wembley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Stanley, came seriously close to the eighty-year mark with the lease on his one bedroom flat in North Wembley. Having purchased his flat two decades ago, the lease term was of minimal interest. by good luck, he realised he needed to take action soon on a lease extension. Stanley arranged for a lease extension just ahead of time last May. Stanley and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £1,050.
Last Christmas we were e-mailed by Mr and Mrs. E González , who moved into a newly refurbished flat in North Wembley in February 2000. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable premises in North Wembley with 100 year plus lease were worth £264,000. The average ground rent payable was £60 billed monthly. The lease ran out in 2078. Having 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including fees.
An example of a Lease Extension matter before the tribunal for a North Wembley flat 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.