With a residential leasehold property in Battle, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Battle with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has below eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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:
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Irrespective of whether you are a tenant or a landlord in Battle,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Battle valuers.
Last year Charlie, came precariously close to the 80-year threshold with the lease on his leasehold flat in Battle. In buying his property two decades ago, the unexpired term was of little interest. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Charlie was able to extend his lease at the eleventh hour last August. Charlie and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he had missed the deadline, the price would have increased by a minimum £975.
In 2014 we were e-mailed by Mr and Mrs. P Cook who, having completed a ground floor flat in Battle in September 2010. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Battle with 100 year plus lease were valued about £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired on 1 February 2076. Having 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of fees.
Last year we were contacted by Mr and Mrs. M Ricardo , who completed a one bedroom apartment in Battle in May 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Battle with a long lease were valued around £280,000. The average amount of ground rent was £45 billed quarterly. The lease finished on 17 February 2096. Considering the 70 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.