Belper leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Belper will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Belper with more than 100 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
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 conveyancer we work with provide it.
Last October Milo, came dangerously near to the eighty-year mark with the lease on his studio apartment in Belper. In buying his flat two decades ago, the length of the lease was of minimal interest. by good luck, he realised he needed to take steps soon on Extending the lease. Milo was able to extend his lease just in the nick of time in July. Milo and the landlord in the end agreed on the final figure of £6,000 . If the lease had dropped to less than eighty years, the price would have become more exhorbitant by a minimum £1,025.
Dr O Brooks was assigned a lease of a garden apartment in Belper in October 1998. The question was if we could estimate the price could be to prolong the lease by 90 years. Similar properties in Belper with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out on 4 July 2096. Given that there were 71 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Dr K Fournier moved into a purpose-built apartment in Belper in January 1995. The question was if we could approximate the premium could be to extend the lease by 90 years. Similar homes in Belper with an extended lease were worth £254,200. The mid-range ground rent payable was £60 collected annually. The lease finished in 2076. Given that there were 51 years left we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including professional charges.