As the the remaining lease term of a Battlesbridge residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner than later. Many flat owners in Battlesbridge will qualify for this right; however a lawyer should be able to confirm if you qualify to extend your lease. In certain 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 in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
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 conveyancer we work with provide it.
Off the back of protracted negotiations with the freeholder of her two bedroom flat in Battlesbridge, Zoe started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was concluded in September 2008. The landlord’s fees were kept to an absolute minimum.
In 2013 we were contacted by Dr Theo Leroy who, having owned a ground floor flat in Battlesbridge in March 1999. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Battlesbridge with a long lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease lapsed in 2096. Considering the 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mr and Mrs. R King acquired a one bedroom flat in Battlesbridge in September 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Battlesbridge with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease concluded on 11 March 2076. Considering the 50 years remaining we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus legals.