Why you should start your Battle lease extension
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Why you should commence your Battle lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/battle">Battle</a> property value </h4>
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Battle leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Battle residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Battle you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Battle leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Battle with more than one hundred years left 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it. <h4>Lending institutions may decide not to lend on a short lease</h4> Nearly all banks and building societies will not lend on a lease with less than seventy years left to run - although this varies from lender to lender. A buyer will no doubt find it difficult in obtaining a mortgage and this could result in your Battle property becoming difficult to dispose of or to obtain finance on. <p>
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Chelsea Building Society</td>
<td> 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.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Battle lease extension solicitors or enfranchisement solicitors
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The lawyers that we work with handle 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.
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Battle Lease Extension Case Studies:
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<h5> Henry, Battle, East Sussex,</h5>
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Henry owned a studio flat in Battle being marketed with a lease of a few days over fifty eight years unexpired. Henry informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and secured satisfactory resolution without going to tribunal and sell the property.
<h5>Battle case:</h5>
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In 2014 we were called by Ms B Clarke who, having bought a one bedroom apartment in Battle in June 1996. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable premises in Battle with a long lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded on 27 June 2089. Given that there were 63 years left we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.
<h5>Battle case:</h5>
<p> Dr Muhammad Phillips took over the lease of a one bedroom apartment in Battle in January 2010. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Battle with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease ended on 4 July 2078. Having 52 years left we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.
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