Belper leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Belper will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Belper with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure 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.
Last October Edward, came very near to the eighty-year threshold with the lease on his studio apartment in Belper. In buying his flat twenty years ago, the length of the lease was of no relevance. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Edward arranged for a lease extension at the eleventh hour last July. Edward and the landlord subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,050.
In 2010 we were e-mailed by Mr and Mrs. V Díaz who, having moved into a ground floor flat in Belper in February 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Belper with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 billed annually. The lease ended in 2077. Considering the 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus professional charges.
Last Winter we were called by Ms Hannah Cooper , who purchased a ground floor apartment in Belper in May 2011. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative flats in Belper with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended in 2088. Considering the 63 years remaining we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of fees.