The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Basildon may extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Basildon lease extension. Putting off the costs now simply increases the price you will ultimately be required to pay for a lease extension.
Leasehold properties in Basildon with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Basildon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Edward was the the leasehold proprietor of a 2 bedroom apartment in Basildon on the market with a lease of a little over 61 years outstanding. Edward on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Dr Megan Lefèvre completed a garden flat in Basildon in July 2012. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar properties in Basildon with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended in 2088. Taking into account 63 years remaining we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.
In 2013 we were e-mailed by Mr and Mrs. Y Nguyen who, having purchased a ground floor apartment in Basildon in February 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Basildon with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2077. Having 52 years left we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.