With a domestic leasehold property in Billericay, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Billericay with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Billericay with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Billericay can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Billericay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a 2 bedroom flat in Billericay being marketed with a lease of just over 72 years unexpired. Alexander on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to exercise his statutory right. Alexander procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Mr and Mrs. F Clarke moved into a basement flat in Billericay in September 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable flats in Billericay with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2099. Considering the 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Dr Milo Pérez completed a garden flat in Billericay in July 2010. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Billericay with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended on 26 April 2079. Given that there were 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.