The value of Billericay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is below than 80 years
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 better control over the value of your Billericay leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Finley, came dangerously close to the eighty-year mark with the lease on his studio flat in Billericay. In buying his home two decades ago, the unexpired term was of little interest. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Finley was able to extend his lease at the eleventh hour last January. Finley and the landlord in the end settled on the final figure of £5,500 . If the lease had gone to less than eighty years, the sum would have escalated by a minimum £1,050.
In 2014 we were phoned by Mrs B Roberts who, having bought a purpose-built flat in Billericay in November 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Billericay with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected annually. The lease terminated on 8 September 2096. Having 70 years unexpired we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of legals.
In 2012 we were phoned by Mrs Lily Clarke who, having was assigned a lease of a first floor apartment in Billericay in January 2002. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar homes in Billericay with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded in 2076. Having 50 years left we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including fees.