There is no doubt about it a leasehold property in Basildon is a wasting asset as a result of the diminishing lease term. If the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Basildon will meet the qualifying criteria; that being said a conveyancer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Basildon with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| TSB |
The lawyers that we work with undertake 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.
Reuben was the the leasehold proprietor of a 2 bedroom apartment in Basildon on the market with a lease of a little over fifty eight years remaining. Reuben informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last May we were called by Dr V Morel , who purchased a studio flat in Basildon in June 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Basildon with an extended lease were valued about £240,600. The average amount of ground rent was £60 invoiced per annum. The lease elapsed in 2088. Having 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.
Last Autumn we were e-mailed by Ms W Rogers , who took over the lease of a purpose-built apartment in Basildon in July 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Basildon with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 invoiced annually. The lease ended on 11 March 2077. Given that there were 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.