Battle leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Battle will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Battle with over 100 years left 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Battle can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Battle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
George was the the leasehold owner of a studio flat in Battle on the market with a lease of just over 72 years left. George informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were George to exercise his statutory right. George obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Winter we were called by Mr D Garcia , who purchased a garden apartment in Battle in July 1999. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative homes in Battle with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 26 June 2090. Having 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Last Summer we were called by Dr Logan Alexander , who acquired a purpose-built flat in Battle in July 1998. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in Battle with an extended lease were valued around £189,000. The mid-range ground rent payable was £55 billed yearly. The lease ended in 2079. Given that there were 53 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.