The market value of a leasehold property in Wembley Park is impacted by how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised well before the 80 year cut off point. Statute enables Wembley Park qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service will provide you increased control over the value of your Wembley Park leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Zachary, started to get close to the eighty-year mark with the lease on his first floor apartment in Wembley Park. In buying his property two decades ago, the lease term was of no significance. Luckily, he became aware that he needed to take action soon on Extending the lease. Zachary arranged for a lease extension just under the wire last June. Zachary and the freeholder via the management company in the end settled on the final figure of £6,000 . If the lease had gone to less than 80 years, the price would have escalated by a minimum £925.
Mr and Mrs. H Pérez acquired a garden apartment in Wembley Park in July 2001. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Wembley Park with a long lease were in the region of £230,800. The mid-range amount of ground rent was £60 collected quarterly. The lease termination date was on 5 June 2085. Given that there were 60 years as a residual term we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including fees.
An example of a Lease Extension case 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 affected 1 flat. The unexpired term as at the valuation date was 76.06 years.