Belsize Park leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher premium will be due. Flat owners in Belsize Park will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Belsize Park with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Retaining our service will provide 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 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.
Ryan was the the leasehold proprietor of a 2 bedroom flat in Belsize Park on the market with a lease of fraction over sixty years left. Ryan on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were approached by Dr Phoebe Jackson who, having was assigned a lease of a one bedroom flat in Belsize Park in September 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Belsize Park with a long lease were valued around £196,400. The mid-range ground rent payable was £55 collected quarterly. The lease terminated on 12 September 2080. Having 54 years remaining we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including legals.
An example of a Lease Extension matter before the tribunal 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 related to 2 flats. The unexpired term as at the valuation date was 16.83 and 16.43.