Billericay residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold premises in Billericay with over one hundred 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Billericay,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Billericay valuers.
During the course of the last few months Ollie, came precariously close to the 80-year threshold with the lease on his garden flat in Billericay. Having purchased his property 19 years previously, the lease term was of minimal interest. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Ollie extended the lease at the eleventh hour last August. Ollie and the freeholder subsequently settled on the final figure of £6,000 . If the lease had slid below 80 years, the price would have become more exhorbitant by at least £1,025.
Mr and Mrs. J Baker moved into a garden flat in Billericay in November 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Billericay with a long lease were in the region of £265,000. The average amount of ground rent was £55 invoiced monthly. The lease ran out in 2100. Having 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2013 we were e-mailed by Mr Ibrahim Sharif who, having moved into a one bedroom flat in Billericay in September 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable residencies in Billericay with an extended lease were worth £166,400. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2080. Taking into account 54 years unexpired we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus legals.