When it comes to domestic leasehold property in Billesdon, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Billesdon with a lease approaching 81 years left should seriously consider extending it sooner than later. When a lease has under 80 years left, under the current Act the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same 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 ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The lawyers that we work with handle Billesdon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the landlord of her purpose-built flat in Billesdon, Yasmin started the lease extension process as the eighty year deadline was fast nearing. The legal work completed in March 2007. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. U Gómez who, having moved into a newly refurbished flat in Billesdon in April 1996. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical residencies in Billesdon with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2082. Having 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Last month we were e-mailed by Mr and Mrs. H Smith , who completed a garden flat in Billesdon in February 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Billesdon with a long lease were valued about £245,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 4 November 2093. Having 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.