For those whose Basildon property is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold residencies in Basildon with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Basildon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Basildon valuers.
Arthur owned a 2 bedroom apartment in Basildon on the market with a lease of a little over fifty eight years remaining. Arthur informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Mr and Mrs. R Sharif acquired a purpose-built apartment in Basildon in September 2002. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Basildon with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed per annum. The lease concluded in 2106. Considering the 80 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
Last Winter we were contacted by Ms Sophie Ali , who acquired a basement apartment in Basildon in September 1997. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable residencies in Basildon with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out in 2095. Given that there were 69 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.