Billericay residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Billericay with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Billericay leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her basement apartment in Billericay, Francesca started the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was concluded in August 2010. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. K Jones , who completed a one bedroom flat in Billericay in November 1998. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative properties in Billericay with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 billed monthly. The lease expiry date was on 16 November 2086. Considering the 60 years left we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of fees.
Dr S Thomas completed a one bedroom flat in Billericay in October 1999. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Billericay with an extended lease were in the region of £255,000. The average ground rent payable was £50 collected every twelve months. The lease lapsed in 2097. Taking into account 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.