Basildon leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Basildon will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Joseph owned a studio flat in Basildon being marketed with a lease of a little over 72 years unexpired. Joseph on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Dr Charlie Thomas was assigned a lease of a garden apartment in Basildon in January 2003. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Basildon with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed in 2103. Considering the 78 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Last Christmas we were contacted by Dr Chantelle Sánchez , who purchased a studio apartment in Basildon in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Basildon with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed monthly. The lease expired on 6 February 2092. Having 67 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including expenses.