The only way is down when it comes to Billericay lease terms. Billericay flats that have a remaining term lower than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will rise.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Billericay can be a difficult process. We recommend you obtain guidance 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.
Ali was the the leasehold proprietor of a 2 bedroom apartment in Billericay on the market with a lease of a little over 61 years remaining. Ali on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
In 2012 we were called by Dr Ali Wilson who, having purchased a newly refurbished flat in Billericay in February 2009. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar residencies in Billericay with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished on 6 October 2105. Taking into account 79 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Last January we were e-mailed by Mr and Mrs. H Michel , who owned a basement flat in Billericay in September 2001. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Billericay with a long lease were valued around £193,400. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2085. Given that there were 59 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.