Battlesbridge leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Battlesbridge will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Battlesbridge with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Battlesbridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Battlesbridge valuers.
Two years ago William, came seriously near to the 80-year threshold with the lease on his leasehold flat in Battlesbridge. In buying his property 18 years previously, the unexpired term was of minimal bearing. Fortunately, he became aware that he needed to take steps soon on a lease extension. William extended the lease at the eleventh hour in June. William and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,125.
Mr Alfie Wilson bought a garden apartment in Battlesbridge in April 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Battlesbridge with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2079. Given that there were 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of legals.
In 2009 we were approached by Mr Hugo Watson who, having was assigned a lease of a purpose-built apartment in Battlesbridge in May 1999. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar homes in Battlesbridge with an extended lease were worth £220,400. The average ground rent payable was £45 billed quarterly. The lease expired on 6 November 2090. Having 64 years remaining we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.