For anyone whose Batheaston property is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Batheaston with in excess of 100 years left on the lease are sometimes referred to as ‘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 warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 conveyancers that we work with undertake Batheaston 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.
Reuben owned a high value flat in Batheaston on the market with a lease of a little over 72 years outstanding. Reuben informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last March we were called by Mr and Mrs. D Wilson , who was assigned a lease of a ground floor flat in Batheaston in May 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Batheaston with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 28 November 2080. Given that there were 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of legals.
Last year we were phoned by Mr and Mrs. B García , who owned a ground floor apartment in Batheaston in November 2002. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Batheaston with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded on 11 October 2100. Taking into account 75 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.