Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Belgravia. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Belgravia have the legal entitlement to extend the lease for a further ninety years under legislation. Please give careful attention before delaying your Belgravia lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Belgravia with more than 100 years remaining 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Belgravia can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 Belgravia lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the freeholder of her studio apartment in Belgravia, Rachel started the lease extension process as the eighty year deadline was quickly nearing. The legal work was finalised in June 2005. The landlord’s costs were restricted to approximately 450 GBP.
Mr S Parker purchased a basement apartment in Belgravia in May 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Belgravia with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished in 2101. Considering the 76 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Belgravia residence 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 was in relation to 1 flat. The remaining number of years on the lease was 13.33 years.