The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Billingshurst have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give careful consideration before delaying your Billingshurst lease extension. Putting off that expense today simply escalates the premium you will eventually have to pay to extend the lease.
Leasehold premises in Billingshurst with in excess of one hundred years outstanding 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire Building Society | 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. |
Lease extensions in Billingshurst can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Billingshurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Zachary owned a 2 bedroom flat in Billingshurst being sold with a lease of fraction over 59 years remaining. Zachary on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2014 we were phoned by Dr K Harris who, having acquired a recently refurbished apartment in Billingshurst in July 2003. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Billingshurst with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2102. Having 76 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. T Evans acquired a purpose-built flat in Billingshurst in June 2002. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative flats in Billingshurst with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected annually. The lease termination date was in 2091. Given that there were 65 years remaining we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including expenses.