Belper 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 the lease gets more expensive. The majority of owners of residential leasehold property in Belper enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Belper you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Belper leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
Lease extensions in Belper can be a difficult process. We recommend you secure guidance 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 in-depth market knowledge dealing with Belper lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the landlord of her one bedroom flat in Belper, Ella started the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in June 2011. The freeholder’s fees were kept to an absolute minimum.
Mr S Lee bought a one bedroom apartment in Belper in June 2006. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative residencies in Belper with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 billed yearly. The lease concluded on 18 January 2089. Having 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.
Last Autumn we were phoned by Dr F Brooks , who moved into a basement apartment in Belper in January 2009. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative flats in Belper with an extended lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease expired in 2100. Having 75 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.