On the balance of probabilities if you own a flat in Basildon you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you enhanced control over the value of your Basildon leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Stanley, started to get close to the eighty-year mark with the lease on his one bedroom flat in Basildon. Having purchased his home two decades ago, the lease term was of minimal relevance. Luckily, he became aware that he needed to take action soon on Extending the lease. Stanley was able to extend his lease at the eleventh hour in September. Stanley and the freeholder via the management company eventually agreed on a premium of £5,000 . If he had missed the deadline, the figure would have increased by at least £1,075.
In 2011 we were phoned by Mr and Mrs. P Wood who, having took over the lease of a one bedroom flat in Basildon in October 1999. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable flats in Basildon with a long lease were worth £257,800. The average amount of ground rent was £65 billed annually. The lease concluded on 22 October 2091. Taking into account 65 years outstanding we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including costs.
Mrs O Lewis moved into a first floor apartment in Basildon in May 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Basildon with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease concluded on 28 July 2080. Given that there were 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus professional charges.