Unfortunately that a Battersea residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Battersea property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Battersea will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Battersea with over 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Battersea can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Battersea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Andrew, started to get close to the eighty-year mark with the lease on his basement apartment in Battersea. In buying his flat two decades ago, the lease term was of little importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Andrew arranged for a lease extension just under the wire in July. Andrew and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had dipped below eighty years, the amount would have increased by at least £950.
In 2013 we were called by Mr F Evans who, having owned a ground floor flat in Battersea in January 1996. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Battersea with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2082. Given that there were 56 years unexpired we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 not including legals.
An example of a Lease Extension decision 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 affected 1 flat. The number of years remaining on the existing lease(s) was 57.06 years.