Unfortunately that a Wembley Central residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Wembley Central property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Wembley Central will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Wembley Central 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 conveyancer we work with provide it.
Half a year ago Aarav, came very near to the 80-year threshold with the lease on his studio apartment in Wembley Central. In buying his home two decades ago, the unexpired term was of no importance. Fortunately, he recognised he needed to take action soon on a lease extension. Aarav arranged for a lease extension just under the wire in January. Aarav and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If the lease had gone below 80 years, the premium would have escalated by a minimum £1,100.
Mr and Mrs. Y Bell moved into a one bedroom apartment in Wembley Central in May 2001. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in Wembley Central with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected quarterly. The lease finished on 27 August 2076. Having 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
An example of a Lease Extension decision for a Wembley Central 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 affected 1 flat. The remaining number of years on the lease was 74 years.