Belper leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Belper will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Belper with over one hundred 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a landlord in Belper,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Belper valuers.
Jude owned a studio apartment in Belper on the market with a lease of a little over 61 years outstanding. Jude informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Christmas we were phoned by Dr H Ward , who bought a first floor apartment in Belper in October 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical homes in Belper with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed quarterly. The lease finished in 2105. Having 80 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Mr and Mrs. B Wright completed a purpose-built apartment in Belper in February 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar residencies in Belper with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out in 2085. Considering the 60 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus fees.