The re-sale value of a leasehold property in Billericay is impacted by how long the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the 80 year threshold. Leasehold Reform legislation enables Billericay qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Billericay can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience 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.
During the course of the last few months Harvey, came critically close to the eighty-year mark with the lease on his purpose- built apartment in Billericay. In buying his flat 18 years ago, the unexpired term was of little concern. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Harvey extended the lease at the eleventh hour last June. Harvey and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If the lease had fallen below eighty years, the premium would have become more exhorbitant by a minimum £1,050.
In 2013 we were phoned by Mr Rory Thompson who, having purchased a first floor apartment in Billericay in June 2000. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative residencies in Billericay with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 billed quarterly. The lease finished in 2090. Having 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.
Mrs J Michel owned a basement apartment in Billericay in February 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Billericay with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed yearly. The lease concluded on 26 April 2101. Having 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.