With a long leasehold premises in Billericay, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Billericay with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has less than eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Billericay can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Billericay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her basement apartment in Billericay, Danielle commenced the lease extension process as the 80 year mark was swiftly approaching. The transaction was concluded in February 2007. The landlord’s costs were negotiated to less than 600 pounds.
Mr and Mrs. I Petit completed a first floor apartment in Billericay in August 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Billericay with an extended lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease termination date was on 13 January 2098. Given that there were 74 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last Winter we were contacted by Ms Emily Lewis , who bought a ground floor apartment in Billericay in April 1995. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Identical homes in Billericay with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 collected yearly. The lease terminated in 2078. Given that there were 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.