There is no doubt about it a leasehold property in Battersea is a wasting asset as a result of the shortening lease. If the residual term has, over one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Battersea will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Battersea leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the freeholder of her purpose-built apartment in Battersea, Sian initiated the lease extension process as the eighty year mark was quickly coming. The lease extension completed in April 2007. The landlord’s costs were kept to an absolute minimum.
In 2011 we were approached by Mr Thomas Hill who, having purchased a one bedroom apartment in Battersea in May 2011. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Battersea with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out in 2086. Considering the 60 years outstanding we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
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 related to 1 flat. The unexpired lease term was 57.06 years.