The closer a residential lease in Belper nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Belper will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Belper with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
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. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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 experience and the close ties they enjoy with Belper valuers.
Lewis was the the leasehold proprietor of a conversion flat in Belper being sold with a lease of fraction over sixty years left. Lewis informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were e-mailed by Mr I Reed , who bought a garden apartment in Belper in February 2002. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Belper with a long lease were worth £245,000. The average ground rent payable was £50 collected annually. The lease expiry date was in 2092. Having 68 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Autumn we were e-mailed by Mr and Mrs. H Wood , who owned a first floor flat in Belper in May 1999. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in Belper with a long lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2103. Having 79 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.