Belmont residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Belmont with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Belmont,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Belmont valuers.
Harrison owned a high value flat in Belmont on the market with a lease of a few days over sixty years remaining. Harrison informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert advice and secured satisfactory resolution informally and sell the property.
In 2012 we were phoned by Mr Y Green who, having purchased a first floor flat in Belmont in November 2010. The question was if we could approximate the price would likely be to extend the lease by 90 years. Identical premises in Belmont with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed in 2083. Given that there were 57 years as a residual term we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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 remaining number of years on the lease was 66.67 years.