Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Battle. Clearly, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Battle have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful attention before delaying your Battle lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service will provide you increased control over the value of your Battle leasehold, as your property will be more valuable and marketable in respect 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.
Lucas owned a 2 bedroom apartment in Battle being sold with a lease of a little over 72 years outstanding. Lucas on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Mrs Catherine Peterson acquired a ground floor flat in Battle in March 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Battle with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2086. Considering the 60 years remaining we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of legals.
Mrs N Taylor purchased a ground floor flat in Battle in June 2011. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable flats in Battle with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 5 January 2106. Considering the 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.