The nearer a residential lease in Belper gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Most flat owners in Belper will qualify for this right; however a conveyancer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the landlord of her purpose-built apartment in Belper, Olivia initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work was finalised in June 2011. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. R González owned a purpose-built apartment in Belper in April 2008. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar flats in Belper with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease expiry date was on 28 January 2095. Having 69 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2014 we were phoned by Ms M Vincent who, having bought a newly refurbished flat in Belper in May 2000. The question was if we could approximate the price would be to prolong the lease by 90 years. Similar properties in Belper with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed in 2106. Having 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.