Why you should start your Belvedere lease extension

Top reasons for lease extension now:

A Belvedere leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Belvedere, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Leasehold owners in Belvedere with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has below eighty years left, under the current Act the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.

Belvedere property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Belvedere with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may decide not to finance a property on a short lease

Lenders are really restricting their approach as regards to properties in Belvedere with short leases. For instance you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus restricting your market.

Get in touch with one of our Belvedere lease extension solicitors or enfranchisement solicitors

The lawyers 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.

Belvedere Lease Extension Example Cases:

Aimee, Belvedere, South East London,

Off the back of unsuccessful discussions with the freeholder of her basement apartment in Belvedere, Aimee started the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction completed in June 2015. The freeholder’s fees were kept to an absolute minimum.

Belvedere case:

Last October we were approach by Dr K Nelson , who moved into a studio apartment in Belvedere in June 1996. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Belvedere with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 15 October 2088. Considering the 62 years remaining we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of expenses.