Batley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Batley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Batley you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Batley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Luca, started to get near to the 80-year threshold with the lease on his two bedroom flat in Batley. Having bought his home two decades ago, the length of the lease was of little interest. by good luck, he recognised he needed to take action soon on Extending the lease. Luca was able to extend his lease at the eleventh hour last May. Luca and the landlord in the end agreed on sum of £5,000 . If the lease had descended below 80 years, the premium would have escalated by a minimum £900.
Last Winter we were approach by Mr and Mrs. Y Bailey , who acquired a one bedroom flat in Batley in September 2011. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical flats in Batley with an extended lease were valued around £270,000. The average amount of ground rent was £55 collected per annum. The lease lapsed on 13 January 2100. Taking into account 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Dr Hugo Dupont acquired a ground floor apartment in Batley in August 2005. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Similar premises in Batley with a long lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed annually. The lease elapsed on 21 November 2080. Given that there were 55 years left we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.