Billesdon leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Leasehold owners in Billesdon will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Billesdon,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Billesdon valuers.
18 months ago Omar, came perilously near to the eighty-year mark with the lease on his ground floor flat in Billesdon. Having purchased his property 18 years previously, the unexpired term was of minimal interest. As luck would have it, he noticed he needed to take action soon on Extending the lease. Omar extended the lease at the eleventh hour in March. Omar and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,150.
Last Winter we were e-mailed by Mr V Pérez , who was assigned a lease of a recently refurbished apartment in Billesdon in September 2010. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Billesdon with a long lease were worth £255,000. The average ground rent payable was £50 collected monthly. The lease ended on 9 March 2097. Given that there were 71 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Spring we were e-mailed by Dr Teddy Leroy , who owned a purpose-built apartment in Billesdon in July 2010. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical properties in Billesdon with an extended lease were worth £254,200. The mid-range ground rent payable was £60 billed monthly. The lease elapsed in 2077. Taking into account 51 years remaining we estimated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of costs.