The only way is down when it comes to Basildon lease terms. Basildon properties that have a remaining term less than than eighty years will reduce in value even faster, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure guidance from a conveyancer and valuer with experience in lease extensions.
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.
Last year Ben, came perilously near to the eighty-year mark with the lease on his first floor apartment in Basildon. In buying his home 18 years ago, the lease term was of no relevance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Ben was able to extend his lease just under the wire last April. Ben and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £925.
In 2012 we were called by Mr N Jackson who, having was assigned a lease of a purpose-built apartment in Basildon in October 2005. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative residencies in Basildon with 100 year plus lease were valued around £225,800. The average ground rent payable was £60 collected quarterly. The lease ended in 2085. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including professional charges.
Mr E King completed a studio apartment in Basildon in October 2007. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Basildon with a long lease were worth £210,000. The average ground rent payable was £50 billed monthly. The lease expired on 15 May 2105. Considering the 80 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.