When it comes to long leasehold property in Battle, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Leasehold owners in Battle with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Battle with in excess of 100 years remaining 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Battle,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Battle valuers.
Omar was the the leasehold proprietor of a 2 bedroom flat in Battle being marketed with a lease of a little over 72 years unexpired. Omar informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Dr Tia Morgan took over the lease of a one bedroom flat in Battle in January 2007. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Battle with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded in 2098. Having 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
Ms Jodie Miller acquired a ground floor apartment in Battle in April 2009. The question was if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Battle with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed annually. The lease expiry date was on 17 May 2087. Given that there were 61 years remaining we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of fees.