Belvedere leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Belvedere enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Belvedere you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Belvedere flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
The conveyancing solicitors that we work with handle Belvedere 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 lawyer we work with provide it.
Jasper owned a 2 bedroom flat in Belvedere being sold with a lease of a few days over 72 years unexpired. Jasper informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were phoned by Mr and Mrs. D Leroy who, having owned a purpose-built apartment in Belvedere in July 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative homes in Belvedere with a long lease were worth £184,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed on 14 April 2075. Considering the 53 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
An example of a Lease Extension decision for a Belvedere flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired term as at the valuation date was 76 years.