When it comes to domestic leasehold premises in Belper, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in Belper with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Belper lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Alex, started to get close to the 80-year mark with the lease on his two bedroom apartment in Belper. Having purchased his flat two decades ago, the lease term was of little concern. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Alex arranged for a lease extension just ahead of time last August. Alex and the landlord subsequently agreed on a premium of £6,000 . If he not met the deadline, the price would have escalated by at least £1,025.
Mr and Mrs. G Moore purchased a studio apartment in Belper in August 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable flats in Belper with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 collected quarterly. The lease concluded on 12 June 2100. Given that there were 74 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were called by Mr and Mrs. E King , who was assigned a lease of a ground floor flat in Belper in August 2012. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Belper with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated on 10 April 2080. Taking into account 54 years as a residual term we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.