Battersea leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Battersea will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB |
Engaging our service will provide you increased control over the value of your Battersea leasehold, as your property will be more valuable and marketable in terms 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.
Jason was the the leasehold proprietor of a studio apartment in Battersea on the market with a lease of just over 59 years left. Jason informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2012 we were called by Mr Reuben Rodríguez who, having completed a first floor apartment in Battersea in June 2004. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Battersea with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease lapsed on 7 June 2098. Given that there were 72 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Battersea property 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 unexpired term as at the valuation date was 57.06 years.