The market value of a leasehold property in Basildon depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded prior to the eighty year threshold. Leasehold Reform legislation entitles Basildon qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Basildon with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Basildon leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a high value flat in Basildon on the market with a lease of a few days over 72 years unexpired. Ibrahim informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Winter we were phoned by Dr David Gómez , who bought a first floor flat in Basildon in September 1999. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable premises in Basildon with 100 year plus lease were valued around £171,800. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2076. Given that there were 50 years remaining we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus professional charges.
Ms Mia Garcia took over the lease of a studio flat in Basildon in July 2004. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Basildon with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded in 2096. Considering the 70 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.