The nearer a domestic lease in Billericay nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty 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 main reason why you should extend the lease without delay. The majority of flat owners in Billericay will qualify for this right; however a lawyer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Billericay with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date 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 |
Retaining our service gives you enhanced control over the value of your Billericay leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Riley was the the leasehold owner of a 2 bedroom apartment in Billericay being sold with a lease of a little over fifty eight years remaining. Riley informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last November we were approach by Ms G Lefebvre , who owned a one bedroom apartment in Billericay in August 1998. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable homes in Billericay with a long lease were valued about £218,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish in 2088. Considering the 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus costs.
In 2012 we were called by Mr B Bell who, having owned a first floor apartment in Billericay in February 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Billericay with a long lease were valued around £270,000. The average amount of ground rent was £55 collected annually. The lease lapsed in 2099. Having 74 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.