The closer a domestic lease in Billericay gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Billericay will qualify for this right; however a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you enhanced control over the value of your Billericay leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her basement apartment in Billericay, Rosie started the lease extension process as the 80 year deadline was quickly coming. The lease extension was concluded in March 2012. The landlord’s charges were kept to an absolute minimum.
In 2009 we were contacted by Mrs Natasha Bennett who, having acquired a one bedroom flat in Billericay in October 1997. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical properties in Billericay with a long lease were in the region of £260,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 2 August 2098. Given that there were 72 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Mr Michael Anderson moved into a studio apartment in Billericay in July 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Billericay with a long lease were valued about £261,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease expiry date was in 2078. Given that there were 52 years remaining we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 plus expenses.