The market value of Billingham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than eighty years
Leasehold properties in Billingham with in excess of 100 years remaining 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake Billingham 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 lawyer we work with provide it.
Half a year ago Edward, came dangerously close to the 80-year mark with the lease on his purpose- built flat in Billingham. Having bought his property two decades ago, the length of the lease was of little interest. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Edward arranged for a lease extension just ahead of time in July. Edward and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £875.
Last Christmas we were approach by Mr and Mrs. E Petit , who was assigned a lease of a basement flat in Billingham in February 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Billingham with an extended lease were worth £257,800. The average ground rent payable was £65 invoiced quarterly. The lease concluded on 25 September 2091. Given that there were 65 years left we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.
In 2010 we were contacted by Dr Kian Bennett who, having moved into a ground floor flat in Billingham in November 2008. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical residencies in Billingham with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 collected annually. The lease expired on 25 April 2080. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including legals.