When it comes to domestic leasehold property in Billericay, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Leasehold owners in Billericay with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years remaining, under the relevant statute the freeholder can calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Retaining our service gives you increased control over the value of your Billericay leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her purpose-built flat in Billericay, Bethan commenced the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension was concluded in February 2005. The landlord’s costs were kept to an absolute minimum.
In 2012 we were approached by Dr Gabriel Hernández who, having owned a basement flat in Billericay in May 2011. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable homes in Billericay with a long lease were valued around £255,000. The average amount of ground rent was £50 collected annually. The lease terminated on 19 November 2097. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Spring we were called by Dr C Taylor , who moved into a garden flat in Billericay in April 2008. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable premises in Billericay with an extended lease were worth £254,200. The average ground rent payable was £60 collected monthly. The lease came to a finish in 2077. Having 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus legals.