Belgravia leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Belgravia will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Belgravia with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Belgravia leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jude, started to get close to the eighty-year threshold with the lease on his garden apartment in Belgravia. In buying his property two decades ago, the lease term was of little importance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Jude extended the lease just under the wire in July. Jude and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the price would have gone up by at least £900.
In 2012 we were phoned by Dr Lewis Evans who, having owned a studio apartment in Belgravia in April 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar flats in Belgravia with 100 year plus lease were in the region of £220,400. The mid-range amount of ground rent was £45 collected annually. The lease expiry date was in 2088. Given that there were 64 years left we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including fees.
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 remaining number of years on the lease was 13.33 years.