With a long leasehold premises in Wembley Park, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Wembley Park with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Wembley Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wembley Park valuers.
Freddie owned a studio apartment in Wembley Park being sold with a lease of fraction over fifty eight years unexpired. Freddie informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mrs Poppy Díaz completed a recently refurbished flat in Wembley Park in September 2011. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar flats in Wembley Park with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2076. Taking into account 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including expenses.
An example of a Lease Extension decision for a Wembley Park property is Ground Floor Flat 69 Clifton Avenue in March 2012. the Tribunal determined that the premium payable for the new lease was £5,932 This case related to 1 flat. The unexpired residue of the current lease was 76.06 years.