It’s a harsh truth that a Battlesbridge residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Battlesbridge property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Battlesbridge will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with handle Battlesbridge 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 conveyancing solicitor we work with provide it.
In the wake of eight months of lengthy correspondence with the landlord of her first floor apartment in Battlesbridge, Lydia started the lease extension process as the eighty year threshold was quickly advancing. The transaction was finalised in October 2009. The freeholder’s charges were negotiated to below 650 pounds.
In 2011 we were approached by Mr and Mrs. H Howard who, having completed a one bedroom flat in Battlesbridge in April 2002. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Identical properties in Battlesbridge with 100 year plus lease were valued about £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish on 14 July 2086. Having 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.
In 2012 we were approached by Dr Danielle Gray who, having completed a newly refurbished flat in Battlesbridge in June 2003. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Battlesbridge with an extended lease were valued around £255,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 1 January 2096. Given that there were 70 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.