On the balance of probabilities where you own a flat in Belsize Park you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Belsize Park leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix was the the leasehold proprietor of a studio apartment in Belsize Park being marketed with a lease of fraction over 72 years remaining. Felix informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr Connor Jackson purchased a recently refurbished apartment in Belsize Park in May 1997. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative properties in Belsize Park with a long lease were in the region of £223,400. The average amount of ground rent was £60 collected annually. The lease terminated on 2 November 2085. Given that there were 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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 remaining number of years on the lease was 16.83 and 16.43.