For anyone whose Belsize Park flat is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Belsize Park with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring 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.
Last Spring Aiden, came critically near to the 80-year threshold with the lease on his ground floor flat in Belsize Park. In buying his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Aiden arranged for a lease extension just ahead of time last April. Aiden and the freeholder in the end agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £875.
In 2013 we were called by Dr James Leroy who, having was assigned a lease of a studio flat in Belsize Park in February 1998. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Belsize Park with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 invoiced per annum. The lease expired in 2077. Having 52 years as a residual term we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus legals.
An example of a Lease Extension decision for a Belsize Park residence 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 term as at the valuation date was 16.83 and 16.43.