With a residential leasehold property in Basildon, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may 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 less than 80 years remaining. Residents in Basildon with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has under 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Basildon,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Basildon valuers.
Off the back of lengthy discussions with the landlord of her two bedroom flat in Basildon, Maisie commenced the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in June 2005. The landlord’s costs were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. R Ricardo who, having owned a one bedroom apartment in Basildon in September 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Basildon with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 collected yearly. The lease ended on 26 October 2089. Having 64 years outstanding we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
Mr Jackson Jones acquired a purpose-built flat in Basildon in April 2012. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical properties in Basildon with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired on 26 September 2078. Given that there were 53 years unexpired we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.