When it comes to long leasehold property in Belsize Park, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Leasehold owners in Belsize Park with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When the lease term has fewer than 80 years remaining, under the relevant legislation the landlord can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
|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.|
|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.|
|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.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Regardless of whether you are a tenant or a landlord in Belsize Park,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Belsize Park valuers.
In 2014 Hugo, started to get near to the 80-year threshold with the lease on his one bedroom flat in Belsize Park. Having purchased his flat two decades ago, the length of the lease was of little bearing. As luck would have it, he realised he would soon be paying way over the odds for Extending the lease. Hugo extended the lease just under the wire in June. Hugo and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had dipped lower than 80 years, the amount would have become more costly by at least £850.
Last Summer we were called by Mr and Mrs. D Petit , who owned a ground floor apartment in Belsize Park in March 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Belsize Park with an extended lease were valued about £267,600. The average ground rent payable was £65 collected annually. The lease ran out on 1 June 2090. Having 67 years left we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including fees.
An example of a Lease Extension decision for a Belsize Park premises is Raised Ground 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 related to 2 flats. The unexpired term was 16.83 and 16.43.