Billericay leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Billericay residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Billericay you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with undertake 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.
Trailing unsuccessful negotiations with the landlord of her first floor apartment in Billericay, Amber commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was concluded in September 2007. The freeholder’s costs were restricted to slightly above 450 pounds.
Last Summer we were contacted by Mr and Mrs. D Pérez , who bought a first floor flat in Billericay in September 1996. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar residencies in Billericay with an extended lease were in the region of £191,000. The average ground rent payable was £65 invoiced every twelve months. The lease concluded in 2083. Considering the 58 years outstanding we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of legals.
Last year we were e-mailed by Ms L Robinson , who owned a garden flat in Billericay in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Billericay with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease expired on 16 January 2094. Given that there were 69 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.