As the the remaining lease term of a Belgravia residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Belgravia will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Belgravia with in excess of 100 years left 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Belgravia can be a difficult process. We recommend you obtain 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 procuring Belgravia lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Oliver, started to get close to the eighty-year threshold with the lease on his leasehold flat in Belgravia. In buying his home two decades ago, the length of the lease was of little significance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Oliver arranged for a lease extension just under the wire last June. Oliver and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £1,125.
In 2014 we were e-mailed by Dr Andrew Lefèvre who, having moved into a garden flat in Belgravia in August 1996. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar premises in Belgravia with a long lease were worth £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2097. Given that there were 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension case for a Belgravia property is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case related to 1 flat. The unexpired lease term was 13.33 years.