With a long leasehold property in Billesdon, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Leasehold owners in Billesdon with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has below eighty years remaining, under the current Act the freeholder can calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Billesdon with over one hundred years unexpired 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Billesdon leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Gabriel, started to get near to the 80-year threshold with the lease on his basement apartment in Billesdon. In buying his flat 19 years previously, the unexpired term was of little significance. Thankfully, he realised he needed to take steps soon on a lease extension. Gabriel was able to extend his lease just ahead of time in March. Gabriel and the freeholder via the management company ultimately agreed on an amount of £5,000 . If the lease had fallen lower than eighty years, the price would have gone up by at least £875.
Last Autumn we were approach by Ms L Brooks , who completed a studio flat in Billesdon in February 1999. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Identical properties in Billesdon with an extended lease were valued around £250,000. The average ground rent payable was £50 invoiced annually. The lease finished in 2094. Having 69 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2013 we were e-mailed by Dr Thomas Moore who, having was assigned a lease of a purpose-built apartment in Billesdon in October 2000. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Billesdon with a long lease were valued about £290,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish in 2105. Given that there were 80 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.