Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Belton. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Belton have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful consideration before delaying your Belton lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Belton can be a difficult process. We recommend you get professional help from a lawyer 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 Belton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a 2 bedroom flat in Belton being marketed with a lease of a little over fifty eight years remaining. Nathan on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last month we were approach by Mr and Mrs. K Lefebvre , who purchased a basement flat in Belton in April 2012. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical premises in Belton with an extended lease were worth £260,200. The average ground rent payable was £65 collected quarterly. The lease concluded on 9 April 2092. Having 66 years remaining we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus expenses.
Dr W Watson moved into a ground floor flat in Belton in August 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Belton with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 9 March 2081. Taking into account 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including costs.