Belsize Park leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Belsize Park will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Belsize Park with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you enhanced control over the value of your Belsize Park leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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 recent months Jayden, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Belsize Park. In buying his property twenty years previously, the unexpired term was of no bearing. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Jayden was able to extend his lease at the eleventh hour in August. Jayden and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the premium would have escalated by a minimum £1,050.
Last Summer we were approach by Ms I Murphy , who moved into a ground floor flat in Belsize Park in October 2003. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Similar flats in Belsize Park with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed annually. The lease ended in 2081. Given that there were 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus professional charges.
An example of a Lease Extension case for a Belsize Park property 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 unexpired term as at the valuation date was 16.83 and 16.43.