When it comes to residential leasehold property in Belton, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Belton with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has under 80 years left, under the current statute the freeholder can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Belton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Belton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 dealing with Belton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her two bedroom apartment in Belton, Rhiannon commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The legal work was finalised in August 2006. The landlord’s costs were negotiated to about 600 pounds.
Last Spring we were phoned by Ms Megan Thomas , who owned a recently refurbished flat in Belton in January 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable homes in Belton with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 billed yearly. The lease lapsed in 2081. Having 55 years left we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus legals.
Dr Ollie Robinson was assigned a lease of a ground floor flat in Belton in June 2011. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar premises in Belton with an extended lease were in the region of £295,000. The average ground rent payable was £50 collected annually. The lease came to a finish in 2101. Considering the 75 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.