It’s a harsh certainty that a Basildon residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Basildon property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most flat owners in Basildon will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Basildon with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Virgin |
Engaging our service will provide you enhanced control over the value of your Basildon leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jason, came perilously near to the 80-year mark with the lease on his basement apartment in Basildon. In buying his home two decades ago, the length of the lease was of no significance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Jason arranged for a lease extension at the eleventh hour last May. Jason and the freeholder via the managing agents in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,100.
Last year we were approach by Dr Toby Morgan , who bought a one bedroom flat in Basildon in June 1999. The question was if we could approximate the price could be for a ninety year lease extension. Comparable flats in Basildon with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease terminated on 16 January 2080. Taking into account 54 years outstanding we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.
Last Spring we were phoned by Dr H Flores , who was assigned a lease of a recently refurbished flat in Basildon in February 2009. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable premises in Basildon with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease terminated on 28 February 2100. Taking into account 74 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.