Chances are that if you own a flat in Battersea you actually own a long leasehold interest over your property
Leasehold premises in Battersea with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service gives 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a high value flat in Battersea on the market with a lease of a few days over 61 years unexpired. Oliver informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were approached by Mrs Niamh Leroy who, having acquired a newly refurbished flat in Battersea in February 2005. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Battersea with an extended lease were valued around £264,000. The average amount of ground rent was £60 collected monthly. The lease came to a finish on 4 November 2077. Considering the 53 years remaining we calculated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including costs.
An example of a Lease Extension case for a Battersea flat 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 remaining number of years on the lease was 57.06 years.