Belsize Park residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Belsize Park with over 100 years outstanding on the lease are often 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 |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Belsize Park can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Belsize Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Ali, started to get near to the eighty-year mark with the lease on his studio apartment in Belsize Park. Having purchased his property two decades ago, the length of the lease was of minimal importance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Ali arranged for a lease extension just ahead of time in April. Ali and the freeholder subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,150.
In 2010 we were contacted by Mr Samuel Ricardo who, having took over the lease of a purpose-built flat in Belsize Park in January 2008. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable residencies in Belsize Park with 100 year plus lease were worth £189,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2079. Considering the 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.
An example of a Lease Extension case for a Belsize Park premises is First Floor Flat 20 Fitzjohns Avenue in July 2014. the Tribunal decided that the premiums to be paid for new leases in respect of the Raised Ground Floor Flat and the First Floor Flat were to be calculated as: Raised Ground Floor: £765,175.14 First Floor: £601,617.77 This case was in relation to 2 flats. The unexpired lease term was 16.83 and 16.43.