Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Basingstoke. Inevitably, the term of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Basingstoke have the right to extend the lease for a further 90 years in accordance with legislation. You should give careful attention before putting off your Basingstoke lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Basingstoke,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Basingstoke valuers.
Aiden was the the leasehold owner of a 2 bedroom flat in Basingstoke being marketed with a lease of just over 59 years unexpired. Aiden on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were called by Ms Sian Edwards who, having completed a one bedroom flat in Basingstoke in November 2010. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar premises in Basingstoke with a long lease were worth £174,200. The average ground rent payable was £55 billed every twelve months. The lease end date was in 2076. Given that there were 51 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.
Dr Lauren Williams was assigned a lease of a basement flat in Basingstoke in May 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Basingstoke with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected monthly. The lease ran out on 20 January 2096. Having 71 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.