The closer a domestic lease in Battlesbridge gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Battlesbridge will qualify for this right; that being said a conveyancer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|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|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|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
Regardless of whether you are a tenant or a freeholder in Battlesbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Battlesbridge valuers.
Finn owned a conversion apartment in Battlesbridge on the market with a lease of a few days over sixty years outstanding. Finn on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. P Rivera was assigned a lease of a purpose-built flat in Battlesbridge in April 1996. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar homes in Battlesbridge with a long lease were worth £270,000. The average ground rent payable was £55 collected every twelve months. The lease termination date was on 24 August 2096. Given that there were 75 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Last Christmas we were approach by Mr Noah Petit , who moved into a one bedroom apartment in Battlesbridge in April 2011. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Battlesbridge with an extended lease were valued about £173,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended in 2076. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.