The market value of a leasehold property in Battle depends on how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded prior to the eighty year mark. Statute entitles Battle qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Retaining our service will provide you enhanced 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 decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Owen was the the leasehold owner of a studio apartment in Battle on the market with a lease of a few days over 72 years outstanding. Owen informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Autumn we were contacted by Mr and Mrs. I Nelson , who owned a one bedroom apartment in Battle in November 1995. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical properties in Battle with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 9 February 2103. Given that there were 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Mr Cameron Roberts moved into a recently refurbished flat in Battle in July 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Battle with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated on 19 February 2092. Having 67 years unexpired we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of legals.