Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Battle. Inevitably, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Battle have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Battle lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Battle with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure Battle 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the landlord of her studio flat in Battle, Freya started the lease extension process as the 80 year threshold was quickly approaching. The lease extension was finalised in April 2012. The landlord’s costs were restricted to a tad over 650 GBP.
In 2011 we were called by Mr and Mrs. B Baker who, having took over the lease of a garden apartment in Battle in July 2001. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Battle with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 invoiced quarterly. The lease elapsed in 2078. Considering the 52 years left we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
In 2010 we were approached by Mr I Allen who, having took over the lease of a recently refurbished apartment in Battle in June 2000. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar properties in Battle with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced monthly. The lease terminated on 19 April 2098. Taking into account 72 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.