With a long leasehold property in Billericay, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years remaining. Leasehold owners in Billericay with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has below eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Billericay with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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 secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Billericay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted correspondence with the freeholder of her purpose-built flat in Billericay, Daisy commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The transaction completed in January 2015. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were approached by Mrs Sophie Bell who, having acquired a recently refurbished apartment in Billericay in November 2004. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Billericay with an extended lease were worth £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed in 2094. Given that there were 68 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
In 2010 we were contacted by Mrs R Richardson who, having acquired a purpose-built flat in Billericay in June 2009. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable premises in Billericay with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease ran out on 24 March 2105. Considering the 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.