As the the remaining lease term of a Billericay residential lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Billericay will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Billericay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Liam owned a high value apartment in Billericay on the market with a lease of a little over 72 years unexpired. Liam informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were contacted by Ms Jordan Miller , who owned a ground floor flat in Billericay in May 2004. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical residencies in Billericay with a long lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 15 January 2081. Having 56 years left we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus fees.
Ms Daisy Mercier took over the lease of a newly refurbished apartment in Billericay in August 1996. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable homes in Billericay with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed on 2 January 2092. Given that there were 67 years left we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.