The value of Billericay 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 increase significantly once the remaining term is less than eighty years
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Billericay,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Billericay valuers.
Henry owned a high value flat in Billericay being sold with a lease of a few days over 61 years unexpired. Henry informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were contacted by Mrs Lucy Davies who, having acquired a studio flat in Billericay in April 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable premises in Billericay with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 billed annually. The lease finished on 12 July 2085. Taking into account 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of costs.
Last Summer we were phoned by Dr Phoebe Kelly , who completed a first floor apartment in Billericay in March 2002. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative homes in Billericay with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed on 3 July 2096. Having 71 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.