Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Billericay. Clearly, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Billericay have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Please give careful consideration before delaying your Billericay lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Billericay can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
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.
After lengthy discussions with the freeholder of her one bedroom apartment in Billericay, Victoria started the lease extension process as the eighty year mark was quickly coming. The transaction completed in September 2011. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. I Gómez acquired a ground floor flat in Billericay in May 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Billericay with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out on 27 June 2103. Having 78 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
In 2012 we were phoned by Mr and Mrs. R Lambert who, having moved into a basement apartment in Billericay in May 1997. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Billericay with 100 year plus lease were valued about £191,000. The average ground rent payable was £65 billed quarterly. The lease terminated in 2083. Given that there were 58 years remaining we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.