With a residential leasehold property in Belsize Park, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Anyone in Belsize Park with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once a lease has under 80 years remaining, under the current Act the landlord is entitled to calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Belsize Park with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Belsize Park can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Belsize Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Austin, came perilously near to the 80-year mark with the lease on his first floor apartment in Belsize Park. In buying his flat 18 years previously, the unexpired term was of no bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Austin extended the lease at the eleventh hour in September. Austin and the freeholder via the management company subsequently agreed on a premium of £5,000 . If he had missed the deadline, the sum would have increased by at least £1,125.
In 2012 we were approached by Mr and Mrs. I Anderson who, having moved into a garden flat in Belsize Park in October 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar flats in Belsize Park with an extended lease were worth £250,400. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 26 March 2089. Having 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of legals.
An example of a Lease Extension case for a Belsize Park premises is First Floor Flat 20 Fitzjohns Avenue in July 2014. the Tribunal decided that the premiums to be paid for new leases in respect of the Raised Ground Floor Flat and the First Floor Flat were to be calculated as: Raised Ground Floor: £765,175.14 First Floor: £601,617.77 This case affected 2 flats. The remaining number of years on the lease was 16.83 and 16.43.