The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Belsize Park have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful consideration before delaying your Belsize Park lease extension. Postponing that expense now simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Belsize Park with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Belsize Park leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Aiden, came dangerously near to the eighty-year mark with the lease on his first floor apartment in Belsize Park. In buying his home two decades ago, the lease term was of minimal bearing. Fortunately, he recognised he would imminently be paying way over the odds for Extending the lease. Aiden extended the lease just ahead of time in January. Aiden and the landlord subsequently settled on an amount of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £1,100.
Dr S Davies was assigned a lease of a recently refurbished flat in Belsize Park in January 1995. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable properties in Belsize Park with a long lease were worth £300,000. The average ground rent payable was £50 invoiced per annum. The lease terminated on 21 April 2100. Taking into account 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
An example of a Lease Extension case 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 related to 2 flats. The unexpired residue of the current lease was 16.83 and 16.43.