There is no doubt about it a leasehold flat or house in Belmont is a wasting asset as a result of the diminishing lease term. If the residual term has, over 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years unexpired 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 logic behind why you should consider extending sooner rather than later. Many flat owners in Belmont will qualify for this right; however a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 Belmont can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Belmont lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Alexander, came very near to the eighty-year mark with the lease on his studio apartment in Belmont. In buying his home 18 years ago, the unexpired term was of minimal significance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Alexander was able to extend his lease just under the wire in January. Alexander and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he not met the deadline, the figure would have escalated by a minimum £900.
Last Spring we were called by Mr and Mrs. E Collins , who owned a ground floor apartment in Belmont in March 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar homes in Belmont with a long lease were valued around £255,000. The average ground rent payable was £50 collected per annum. The lease came to a finish on 15 September 2096. Having 71 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Belmont residence is Buchanan Court 39 Vernon Road in April 2010. the Tribunal assessed that the premium payable for the freehold of the block should be £44,000. This case affected 2 flats. The number of years remaining on the existing lease(s) was 66.67 years.