As the the remaining lease term of a Battlesbridge residential lease decreases so does its value and therefore the value of your property. If the residual term has, more than 100 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years unexpired 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 sooner rather than later. Most flat owners in Battlesbridge will meet the qualifying criteria; however a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Battlesbridge with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
Engaging our service will provide you better control over the value of your Battlesbridge leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Edward, came seriously near to the eighty-year threshold with the lease on his leasehold apartment in Battlesbridge. In buying his flat two decades ago, the unexpired term was of no bearing. Thankfully, he realised he would imminently be paying an inflated amount for Extending the lease. Edward extended the lease just ahead of time last July. Edward and the landlord eventually settled on sum of £5,000 . If the lease had dipped below 80 years, the price would have increased by at least £1,075.
Last April we were called by Mr and Mrs. E Campbell , who acquired a one bedroom flat in Battlesbridge in March 1996. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative residencies in Battlesbridge with 100 year plus lease were worth £203,200. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2086. Taking into account 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.
In 2014 we were phoned by Mr and Mrs. J Anderson who, having completed a one bedroom flat in Battlesbridge in February 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Battlesbridge with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 1 January 2097. Taking into account 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.