Unfortunately that a Billesdon residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Billesdon property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Billesdon will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Billesdon with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland |
Using our service gives you better control over the value of your Billesdon leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Archie was the the leasehold owner of a high value flat in Billesdon being sold with a lease of fraction over fifty eight years remaining. Archie informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were phoned by Dr P Martínez , who was assigned a lease of a garden apartment in Billesdon in September 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable homes in Billesdon with an extended lease were in the region of £191,000. The average ground rent payable was £65 billed every twelve months. The lease ended on 5 April 2084. Taking into account 58 years unexpired we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus expenses.
In 2011 we were called by Mr Lewis David who, having bought a studio apartment in Billesdon in May 2005. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar residencies in Billesdon with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out on 17 August 2095. Considering the 69 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.