Belford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Belford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Belford you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Belford leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Belford with over one hundred years outstanding 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 premises. In such circumstances there is often little to be gained by buying the freehold 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Belford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Matthew owned a conversion apartment in Belford being marketed with a lease of a few days over 72 years outstanding. Matthew on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were called by Dr Isabella García who, having acquired a ground floor flat in Belford in August 2005. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Belford with 100 year plus lease were valued around £232,800. The average ground rent payable was £45 billed monthly. The lease finished in 2090. Given that there were 65 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
In 2012 we were approached by Ms Georgina Clarke who, having took over the lease of a one bedroom apartment in Belford in November 1998. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar homes in Belford with a long lease were valued about £275,000. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2101. Taking into account 76 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.