Billesdon residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Billesdon can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 Billesdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Reuben, came perilously near to the 80-year threshold with the lease on his basement apartment in Billesdon. In buying his home two decades ago, the unexpired term was of no significance. Luckily, he realised he needed to take steps soon on a lease extension. Reuben extended the lease just under the wire in September. Reuben and the landlord in the end agreed on an amount of £5,500 . If he not met the deadline, the figure would have become more exhorbitant by at least £850.
Dr H Leroy owned a basement apartment in Billesdon in June 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical premises in Billesdon with an extended lease were valued about £261,600. The mid-range amount of ground rent was £60 collected annually. The lease elapsed on 1 January 2078. Taking into account 52 years as a residual term we estimated the premium to the landlord to extend the lease to be within £39,000 and £45,000 plus costs.
Last Christmas we were called by Mr Charlie Lefebvre , who acquired a purpose-built flat in Billesdon in July 2008. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable properties in Billesdon with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 12 October 2089. Considering the 63 years outstanding we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.