On the balance of probabilities if you own a flat in Battlesbridge you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Battlesbridge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Battlesbridge valuers.
Kian owned a 2 bedroom flat in Battlesbridge on the market with a lease of a few days over sixty years outstanding. Kian on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. W Khan took over the lease of a basement flat in Battlesbridge in October 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Battlesbridge with 100 year plus lease were valued about £186,000. The average amount of ground rent was £65 billed quarterly. The lease termination date was in 2083. Having 58 years as a residual term we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.
Mrs U López bought a garden apartment in Battlesbridge in July 2011. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Battlesbridge with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 21 January 2094. Given that there were 69 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.