Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Belgravia. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Belgravia have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give due deliberation before delaying your Belgravia lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Belgravia with over one hundred 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank |
Lease extensions in Belgravia can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 year Max, came perilously near to the 80-year mark with the lease on his studio apartment in Belgravia. In buying his flat 19 years previously, the unexpired term was of no concern. Thankfully, he noticed he needed to take steps soon on a lease extension. Max extended the lease just under the wire in August. Max and the freeholder in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,075.
Ms Mia Smith moved into a studio apartment in Belgravia in July 2005. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar residencies in Belgravia with a long lease were valued about £203,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended on 28 August 2087. Having 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal 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 lease term was 13.33 years.