There is no doubt about it a leasehold property in Billesdon is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Billesdon will qualify for this right; however a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Billesdon with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Last year Eli, started to get close to the 80-year mark with the lease on his ground floor apartment in Billesdon. In buying his home two decades ago, the length of the lease was of no bearing. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Eli arranged for a lease extension just under the wire last January. Eli and the freeholder via the managing agents eventually settled on an amount of £5,000 . If he had missed the deadline, the sum would have increased by a minimum £900.
Last July we were contacted by Dr L Collins , who acquired a first floor flat in Billesdon in January 1996. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative residencies in Billesdon with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease end date was in 2101. Considering the 76 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Last Christmas we were approach by Mrs Melissa Wright , who moved into a one bedroom flat in Billesdon in January 2004. The question was if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Billesdon with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded in 2081. Considering the 56 years unexpired we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus costs.