When it comes to long leasehold property in Basildon, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Basildon with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has less than 80 years remaining, under the current statute the freeholder can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
Using our service gives you better control over the value of your Basildon leasehold, as your property will be more valuable and marketable in relation to the 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.
Joseph was the the leasehold proprietor of a high value flat in Basildon being sold with a lease of just over 61 years left. Joseph informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph procured expert advice and secured an acceptable deal informally and readily saleable.
Dr U Ricardo purchased a recently refurbished apartment in Basildon in July 2010. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Basildon with an extended lease were valued about £216,000. The mid-range amount of ground rent was £60 collected annually. The lease ran out on 11 March 2084. Given that there were 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
In 2012 we were e-mailed by Mrs B Cooper who, having owned a basement apartment in Basildon in August 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Basildon with a long lease were worth £205,000. The average ground rent payable was £50 collected monthly. The lease came to a finish in 2104. Taking into account 78 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.