Belvedere 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. Most owners of residential leasehold property in Belvedere enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Belvedere you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Belvedere flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake Belvedere lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Sebastian owned a studio flat in Belvedere being sold with a lease of a little over 59 years unexpired. Sebastian informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mrs Chloe Bennett moved into a one bedroom apartment in Belvedere in June 2003. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Identical flats in Belvedere with a long lease were worth £206,200. The mid-range ground rent payable was £60 collected yearly. The lease ended on 11 November 2082. Given that there were 56 years outstanding we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.
An example of a Lease Extension matter before the tribunal for a Belvedere premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired lease term was 76 years.