Belmont leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Belmont enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Belmont you must see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Belmont leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you increased control over the value of your Belmont leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Finn, started to get close to the 80-year mark with the lease on his first floor apartment in Belmont. Having bought his home two decades ago, the lease term was of little relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Finn arranged for a lease extension just in the nick of time last July. Finn and the landlord eventually settled on a premium of £5,000 . If the lease had dipped to less than 80 years, the figure would have gone up by at least £925.
In 2013 we were e-mailed by Dr D White who, having was assigned a lease of a recently refurbished apartment in Belmont in February 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar homes in Belmont with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished in 2095. Given that there were 69 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement case for a Belmont property 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 unexpired term as at the valuation date was 66.67 years.