Billericay leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Billericay will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Billericay with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with procure Billericay 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her studio flat in Billericay, Ellen started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension was finalised in February 2008. The freeholder’s costs were negotiated to less than 650 pounds.
In 2013 we were approached by Ms F Wood who, having was assigned a lease of a one bedroom flat in Billericay in May 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Billericay with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired on 25 March 2101. Having 77 years outstanding we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Last Winter we were phoned by Mrs G Dupont , who purchased a one bedroom flat in Billericay in November 2011. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative flats in Billericay with a long lease were valued about £183,600. The average amount of ground rent was £65 billed per annum. The lease end date was on 10 November 2081. Taking into account 57 years as a residual term we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.