Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Basildon. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Basildon have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful attention before delaying your Basildon lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Basildon 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 conveyancer we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her one bedroom flat in Basildon, Grace commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in February 2015. The landlord’s costs were kept to an absolute minimum.
Dr Y Hall took over the lease of a recently refurbished flat in Basildon in June 2003. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable residencies in Basildon with an extended lease were in the region of £206,200. The average amount of ground rent was £55 invoiced yearly. The lease elapsed in 2081. Considering the 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
Ms O Bertrand moved into a recently refurbished flat in Basildon in October 2001. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar flats in Basildon with a long lease were in the region of £300,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish in 2101. Given that there were 76 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.