Battle leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Battle enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Battle you must see if your lease has between seventy and ninety years left. There are good reasons why a Battle flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Battle with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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.
Twenty four months ago Archie, came precariously close to the 80-year threshold with the lease on his one bedroom apartment in Battle. In buying his property two decades ago, the length of the lease was of little relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Archie arranged for a lease extension just under the wire in January. Archie and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he had missed the deadline, the figure would have become more costly by at least £875.
Dr T Gunderson owned a newly refurbished flat in Battle in January 2006. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical premises in Battle with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced per annum. The lease concluded on 9 October 2079. Having 54 years left we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.
Last month we were phoned by Mr and Mrs. Y Morgan , who took over the lease of a one bedroom apartment in Battle in February 2011. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable homes in Battle with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease finished in 2099. Taking into account 74 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.