When it comes to domestic leasehold property in Battersea, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Residents in Battersea with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has less than eighty years remaining, under the current legislation the landlord can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Battersea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Daniel was the the leasehold owner of a studio apartment in Battersea being marketed with a lease of a few days over sixty years left. Daniel informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Winter we were approach by Mr F Jackson , who owned a newly refurbished apartment in Battersea in June 2001. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Battersea with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected per annum. The lease concluded in 2099. Considering the 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
An example of a Lease Extension case 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 unexpired term was 57.06 years.