The market value of a leasehold property in Billericay is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year mark. Current legislation enables Billericay qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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. |
| Yorkshire 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. |
Lease extensions in Billericay can be a difficult process. We recommend you obtain 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 a wealth of experience 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.
After protracted discussions with the landlord of her garden apartment in Billericay, Phoebe started the lease extension process as the 80 year mark was swiftly coming. The transaction completed in July 2008. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were phoned by Ms Jessica Hall , who owned a basement flat in Billericay in April 2004. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in Billericay with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 invoiced yearly. The lease elapsed on 19 June 2087. Given that there were 62 years left we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.
Last month we were called by Mr Austin Laurent , who owned a one bedroom apartment in Billericay in September 2012. The question was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Billericay with an extended lease were valued around £265,000. The average ground rent payable was £50 invoiced annually. The lease concluded in 2098. Considering the 73 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.