When it comes to residential leasehold property in Belsize Park, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Belsize Park with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the current legislation the freeholder can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Belsize Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Belsize Park valuers.
Hugo was the the leasehold owner of a 2 bedroom apartment in Belsize Park being sold with a lease of fraction over 59 years unexpired. Hugo on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr Joshua Khan who, having purchased a first floor flat in Belsize Park in August 1998. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Belsize Park with an extended lease were in the region of £213,600. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2083. Given that there were 57 years left we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.
An example of a Lease Extension matter before the tribunal for a Belsize Park property 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 affected 2 flats. The remaining number of years on the lease was 16.83 and 16.43.