As the length of the unexpired term of a Belgravia residential lease decreases so does its value and therefore the value of your property. If the lease has, over 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 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 logic behind why you should extend the lease sooner rather than later. Most flat owners in Belgravia will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Belgravia with over 100 years left on the lease are often regarded as a ‘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 estate charges merit 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 secure guidance from a conveyancing solicitor 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 Belgravia 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 6 months of protracted negotiations with the landlord of her basement apartment in Belgravia, Ashleigh started the lease extension process as the eighty year deadline was rapidly approaching. The legal work completed in January 2013. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were approach by Mrs N Morel , who took over the lease of a one bedroom apartment in Belgravia in November 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Belgravia with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 collected annually. The lease lapsed in 2092. Considering the 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
An example of a Lease Extension case for a Belgravia residence 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 affected 1 flat. The unexpired term as at the valuation date was 13.33 years.