With a long leasehold property in Battle, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Leasehold owners in Battle with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has fewer than 80 years outstanding, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Battle with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you increased control over the value of your Battle leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
George owned a studio apartment in Battle on the market with a lease of fraction over 72 years outstanding. George informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were approach by Dr J Flores , who bought a basement flat in Battle in October 2012. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Battle with an extended lease were in the region of £257,800. The average ground rent payable was £65 billed yearly. The lease lapsed in 2091. Taking into account 65 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
Dr K Howard purchased a studio flat in Battle in February 2005. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Battle with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 invoiced yearly. The lease finished on 9 August 2080. Having 54 years remaining we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of fees.