When it comes to long leasehold premises in Belvedere, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years left. Anyone in Belvedere with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Belvedere with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Belvedere,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Belvedere valuers.
Cameron owned a high value apartment in Belvedere on the market with a lease of a little over 61 years unexpired. Cameron on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were called by Mr and Mrs. H Hernández who, having acquired a newly refurbished flat in Belvedere in February 2009. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Belvedere with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2076. Considering the 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.
An example of a Lease Extension decision for a Belvedere property 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 number of years remaining on the existing lease(s) was 76 years.