The value of Basildon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than eighty years
Leasehold properties in Basildon with more than 100 years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her first floor flat in Basildon, Laura started the lease extension process as the 80 year mark was swiftly coming. The legal work completed in May 2011. The landlord’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Dr M Dupont who, having bought a purpose-built apartment in Basildon in April 1997. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Basildon with an extended lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease expired on 20 August 2091. Taking into account 66 years remaining we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of fees.
In 2014 we were phoned by Mr and Mrs. Y Bennett who, having moved into a one bedroom apartment in Basildon in April 2004. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar premises in Basildon with a long lease were worth £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2080. Taking into account 55 years remaining we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.