The only way is down when it comes to Basildon lease terms. Basildon leaseholds that have a remaining term lower than 80 years will drop in value even faster, and the cost of extending your lease will go up.
Leasehold properties in Basildon with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Lease extensions in Basildon can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Basildon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the freeholder of her first floor flat in Basildon, Molly started the lease extension process as the 80 year deadline was swiftly approaching. The lease extension completed in July 2015. The freeholder’s fees were restricted to slightly above 500 pounds.
Last Spring we were e-mailed by Dr N Bennett , who purchased a one bedroom apartment in Basildon in March 2008. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative homes in Basildon with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2104. Taking into account 78 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Dr P Jones moved into a purpose-built apartment in Basildon in September 2005. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparative homes in Basildon with a long lease were valued about £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease terminated in 2093. Given that there were 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including costs.