Belsize Park residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with procure Belsize Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Toby, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Belsize Park. In buying his flat 19 years previously, the unexpired term was of no interest. Fortunately, he recognised he needed to take action soon on a lease extension. Toby extended the lease just under the wire in March. Toby and the landlord subsequently agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the sum would have escalated by at least £950.
Mrs S Lefèvre owned a garden apartment in Belsize Park in February 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Belsize Park with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish on 6 April 2099. Having 73 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Lease Extension decision for a Belsize Park flat 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 remaining number of years on the lease was 16.83 and 16.43.