The closer a domestic lease in Belgravia gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 100 years to run then this decrease may be of little impact nevertheless 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 increase markedly the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Belgravia will qualify for this right; however a conveyancer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Belgravia with more than 100 years left 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Belgravia,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Belgravia valuers.
Two years ago Oliver, came perilously near to the 80-year mark with the lease on his garden flat in Belgravia. In buying his flat two decades ago, the lease term was of no relevance. by good luck, he recognised he needed to take steps soon on a lease extension. Oliver was able to extend his lease at the eleventh hour in June. Oliver and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £1,050.
In 2012 we were called by Mr and Mrs. S Garcia who, having took over the lease of a studio apartment in Belgravia in March 2011. The question was if we could approximate the price could be to extend the lease by 90 years. Similar properties in Belgravia with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed on 9 October 2103. Having 77 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
An example of a Lease Extension matter before the tribunal for a Belgravia premises 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 was in relation to 1 flat. The unexpired lease term was 13.33 years.