Belgravia leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Belgravia enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Belgravia you must check if your lease has between 70 and 90 years remaining. There are good reasons why a Belgravia leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Belgravia with over 100 years unexpired on the lease are often 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 service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Retaining our service gives you increased control over the value of your Belgravia leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the landlord of her garden flat in Belgravia, Abbie started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction completed in October 2011. The landlord’s fees were restricted to below 600 GBP.
In 2013 we were contacted by Dr Kai Vincent who, having completed a one bedroom apartment in Belgravia in May 1998. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative properties in Belgravia with 100 year plus lease were in the region of £203,200. The mid-range ground rent payable was £65 billed quarterly. The lease expired in 2086. Given that there were 61 years outstanding we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of expenses.
An example of a Lease Extension case for a Belgravia property is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case related to 1 flat. The unexpired residue of the current lease was 13.33 years.