When it comes to domestic leasehold property in Battle, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years left. Residents in Battle with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has fewer than eighty years remaining, under the current statute the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Battle with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Battle leasehold, as your property will be more valuable and marketable in relation to the 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.
Last Summer Owen, came perilously near to the 80-year mark with the lease on his leasehold apartment in Battle. Having purchased his flat twenty years ago, the unexpired term was of no significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Owen arranged for a lease extension just in the nick of time in June. Owen and the freeholder via the managing agents in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,125.
Last Winter we were e-mailed by Mr and Mrs. M King , who completed a garden apartment in Battle in September 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Battle with a long lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2093. Taking into account 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of fees.
In 2014 we were e-mailed by Dr Joshua Garcia who, having purchased a ground floor apartment in Battle in August 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Battle with a long lease were worth £206,200. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out in 2082. Considering the 56 years unexpired we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.