The value of Belford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than 80 years
Leasehold premises in Belford with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Belford 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 conveyancer we work with provide it.
During the course of the last few months Aarav, came perilously near to the eighty-year mark with the lease on his studio flat in Belford. Having purchased his flat two decades ago, the unexpired term was of minimal significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Aarav was able to extend his lease just under the wire last April. Aarav and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the premium would have become more costly by a minimum £1,075.
In 2013 we were called by Ms Katie James who, having took over the lease of a one bedroom apartment in Belford in November 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Belford with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected yearly. The lease ended in 2098. Having 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. N Morgan purchased a basement apartment in Belford in May 2002. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Belford with an extended lease were valued around £261,600. The average ground rent payable was £60 invoiced annually. The lease expired on 16 October 2078. Given that there were 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 plus professional charges.