When it comes to domestic leasehold property in Battersea, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Battersea with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years left, under the current statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
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 is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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 a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Skipton Building Society | 85 years from the date of completion of the mortgage |
| The Mortgage Works | Minimum unexpired lease term is 70 years with 30 years remaining at the end of the mortgage term. Report to the issuing office if the lease term is shorter than that stated within the Offer and has less than 100 years remaining.(There is no requirement to report if the lease term is lower than that stated on the Offer but still has 100 years or more to run, or if the lease term is longer than that stated on the Offer). NEW BUILD PROPERTIES (includes office conversions) The following are not acceptable: - The unexpired lease term on a new build flat is less than 125 years - The unexpired lease term on a new build house is less than 250 years - Starting ground rent is more than 0.1% of the property value The lease must be amended to comply with the above. If not the case cannot proceed. Please advise us where the case cannot proceed. Ground rents and event fees: Ground rent and other event fees must be reasonable at all times during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised. However, unreasonable multipliers of ground rent will not be permitted, for example, doubling every 5, 10 or 15 years. These must be referred to us and we will advise if our mortgage offer remains valid. If you are unsure as to whether the terms of a lease are unreasonable, please refer the details to us. |
Regardless of whether you are a tenant or a landlord in Battersea,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Battersea valuers.
Trailing lengthy negotiations with the freeholder of her first floor apartment in Battersea, Daisy started the lease extension process as the eighty year mark was rapidly coming. The legal work was finalised in April 2014. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. U Garcia , who purchased a studio flat in Battersea in February 2009. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable properties in Battersea with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded on 1 August 2087. Considering the 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired lease term was 57.06 years.