Battersea leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Battersea will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Battersea,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Battersea valuers.
Following protracted negotiations with the landlord of her first floor flat in Battersea, Jordan commenced the lease extension process as the 80 year deadline was rapidly coming. The lease extension was finalised in January 2013. The landlord’s fees were kept to an absolute minimum.
Dr A Bennett bought a first floor flat in Battersea in June 1996. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative flats in Battersea with an extended lease were in the region of £200,800. The average ground rent payable was £65 invoiced yearly. The lease came to a finish on 7 July 2085. Having 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Battersea premises is 150A Albert Palace Mansions Lurline Gardens in July 2013. The Tribunal determined that the premium payable for the new lease of the subject property was £42,069 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 57.06 years.