As the length of the unexpired term of a Battle domestic lease diminished so does its value and therefore the value of your property. If the lease has, over one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Battle will qualify for this right; that being said a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers 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 lawyer we work with provide it.
Trailing protracted correspondence with the landlord of her one bedroom flat in Battle, Ellen started the lease extension process as the eighty year threshold was rapidly coming. The lease extension completed in November 2015. The freeholder’s fees were restricted to a tad over 450 pounds.
In 2011 we were called by Mr T Scott who, having moved into a recently refurbished flat in Battle in October 1999. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable properties in Battle with a long lease were valued about £275,000. The average ground rent payable was £45 invoiced annually. The lease expired in 2094. Having 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2009 we were phoned by Mrs Nicole Cox who, having purchased a studio apartment in Battle in January 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Battle with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ended on 21 June 2083. Given that there were 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.