Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Basildon. Clearly, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Basildon have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Please give due deliberation before delaying your Basildon lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Basildon with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you enhanced control over the value of your Basildon leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the freeholder of her leasehold apartment in Basildon, Mollie initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The transaction was concluded in March 2014. The freeholder’s costs were negotiated to slightly above 500 GBP.
Ms Isabella Morgan purchased a basement flat in Basildon in October 2004. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative homes in Basildon with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired in 2079. Given that there were 55 years outstanding we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.
Last month we were contacted by Dr Sebastian Clark , who took over the lease of a one bedroom apartment in Basildon in June 2010. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Basildon with 100 year plus lease were worth £295,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2099. Having 75 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.