It’s a harsh certainty that a Battle residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Battle property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Battle will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you better control over the value of your Battle leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her basement flat in Battle, Katie initiated the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work was finalised in August 2007. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. K Baker , who owned a newly refurbished flat in Battle in January 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Battle with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2098. Taking into account 73 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last year we were contacted by Ms G Baker , who was assigned a lease of a one bedroom apartment in Battle in August 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Battle with a long lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease came to a finish on 4 September 2087. Considering the 62 years remaining we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.