It’s an underpublicised truth that a Battle residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Battle property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Battle will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Battle with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with procure Battle 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.
18 months ago Owen, came seriously near to the eighty-year mark with the lease on his basement apartment in Battle. Having bought his home two decades ago, the lease term was of minimal interest. Fortunately, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Owen extended the lease just in the nick of time last July. Owen and the freeholder via the managing agents in the end agreed on sum of £5,000 . If the lease had gone lower than 80 years, the sum would have increased by at least £1,075.
Last year we were contacted by Mr and Mrs. S Martínez , who took over the lease of a first floor flat in Battle in April 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical premises in Battle with a long lease were in the region of £208,600. The average amount of ground rent was £60 invoiced yearly. The lease expired on 28 September 2082. Taking into account 57 years remaining we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.
In 2013 we were e-mailed by Dr S Robinson who, having took over the lease of a studio apartment in Battle in January 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Battle with an extended lease were valued around £200,000. The average amount of ground rent was £50 collected every twelve months. The lease ended on 10 October 2102. Considering the 77 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.