Battlesbridge leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Battlesbridge will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Battlesbridge with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
| 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. |
Lease extensions in Battlesbridge can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Battlesbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake owned a conversion apartment in Battlesbridge being marketed with a lease of a little over 61 years left. Blake on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were contacted by Mr and Mrs. M Lee who, having moved into a basement flat in Battlesbridge in January 2011. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative homes in Battlesbridge with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out on 24 February 2079. Taking into account 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.
Mr V Wilson moved into a garden apartment in Battlesbridge in February 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Battlesbridge with an extended lease were in the region of £227,800. The average ground rent payable was £45 billed annually. The lease finished in 2090. Having 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.