Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Battle. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Battle have the legal entitlement to extend the lease for a further 90 years under statute. Do give careful consideration before delaying your Battle lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Battle can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Battle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her leasehold flat in Battle, Victoria commenced the lease extension process as the eighty year threshold was quickly approaching. The transaction completed in September 2011. The landlord’s fees were negotiated to under four hundred pounds.
Dr Tyler Evans completed a one bedroom apartment in Battle in July 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Battle with 100 year plus lease were valued around £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired on 7 July 2101. Given that there were 76 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2012 we were e-mailed by Dr M Cooper who, having took over the lease of a basement flat in Battle in August 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Battle with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was on 14 November 2090. Given that there were 65 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.