Batley leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Batley will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Batley with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
The conveyancing solicitors that we work with procure Batley 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 conveyancing solicitor we work with provide it.
Last Christmas Jack, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Batley. In buying his home two decades ago, the unexpired term was of no bearing. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Jack was able to extend his lease at the eleventh hour last June. Jack and the freeholder eventually settled on the final figure of £6,000 . If the lease had fallen lower than eighty years, the amount would have gone up by at least £875.
Last Autumn we were contacted by Mr and Mrs. U Nelson , who owned a one bedroom flat in Batley in February 2010. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Batley with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 15 March 2081. Given that there were 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including expenses.
In 2012 we were phoned by Mrs W Rogers who, having purchased a purpose-built flat in Batley in March 2003. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Batley with an extended lease were worth £242,600. The mid-range ground rent payable was £45 billed annually. The lease lapsed on 7 January 2092. Taking into account 67 years outstanding we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.