North Wembley leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Flat owners in North Wembley will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in North Wembley with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in North Wembley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Wembley valuers.
Off the back of unsuccessful correspondence with the freeholder of her leasehold flat in North Wembley, Leah commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was concluded in June 2008. The landlord’s charges were restricted to a tad over 600 GBP.
Last year we were contacted by Mr S Gómez , who purchased a recently refurbished flat in North Wembley in May 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in North Wembley with a long lease were worth £260,000. The average amount of ground rent was £50 collected annually. The lease concluded in 2098. Considering the 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension decision for a North 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 related to 1 flat. The unexpired lease term was 74 years.