Billingshurst residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Billingshurst leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Jason, started to get near to the eighty-year threshold with the lease on his basement flat in Billingshurst. In buying his property two decades ago, the lease term was of minimal interest. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Jason was able to extend his lease just under the wire in July. Jason and the landlord eventually settled on the final figure of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £1,000.
In 2010 we were approached by Dr Riley Carter who, having took over the lease of a purpose-built flat in Billingshurst in April 1996. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable properties in Billingshurst with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 27 January 2096. Having 71 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Christmas we were contacted by Mr and Mrs. D Khan , who was assigned a lease of a newly refurbished flat in Billingshurst in October 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Billingshurst with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected per annum. The lease ended on 22 May 2085. Considering the 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.