Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Basingstoke. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Basingstoke have the legal entitlement to extend the lease for a further ninety years under legislation. You should give due consideration before putting off your Basingstoke lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 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 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Using our service gives you enhanced control over the value of your Basingstoke leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a 2 bedroom apartment in Basingstoke being sold with a lease of fraction over 59 years remaining. Stanley on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert advice and secured satisfactory deal informally and readily saleable.
In 2011 we were approached by Dr C Reed who, having acquired a first floor flat in Basingstoke in November 1996. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Basingstoke with an extended lease were in the region of £210,000. The average ground rent payable was £50 billed per annum. The lease finished on 12 August 2106. Having 80 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
Mrs F Ali was assigned a lease of a garden apartment in Basingstoke in February 2009. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Basingstoke with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 25 October 2095. Given that there were 69 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.