With a long leasehold premises in Battlesbridge, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years left. Residents in Battlesbridge with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has fewer than 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you better control over the value of your Battlesbridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold proprietor of a conversion flat in Battlesbridge being sold with a lease of a few days over fifty eight years outstanding. Max informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
In 2009 we were e-mailed by Mrs D Watson who, having owned a ground floor flat in Battlesbridge in August 2009. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative premises in Battlesbridge with a long lease were valued around £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2090. Considering the 66 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Mr and Mrs. L Ali moved into a basement apartment in Battlesbridge in September 2006. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable homes in Battlesbridge with a long lease were valued around £275,000. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 1 March 2101. Considering the 77 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.