With a domestic leasehold premises in Battle, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years remaining. Anyone in Battle with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the current legislation the landlord can calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Battle with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Luca was the the leasehold proprietor of a studio flat in Battle being marketed with a lease of a little over sixty years left. Luca on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Winter we were approach by Dr Andrew Martin , who purchased a studio apartment in Battle in October 2012. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical homes in Battle with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced annually. The lease elapsed on 12 June 2085. Given that there were 59 years remaining we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus costs.
Dr Benjamin Lee completed a basement apartment in Battle in September 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Battle with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease expired on 26 October 2105. Considering the 79 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.