Battlesbridge leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Battlesbridge will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Battlesbridge with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Battlesbridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Battlesbridge valuers.
After unsuccessful discussions with the landlord of her one bedroom flat in Battlesbridge, Louise initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension was concluded in March 2007. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. P Peterson , who acquired a purpose-built apartment in Battlesbridge in November 2001. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar flats in Battlesbridge with an extended lease were valued about £245,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish in 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Ms Jade Thompson bought a one bedroom flat in Battlesbridge in October 1995. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative flats in Battlesbridge with 100 year plus lease were worth £280,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2104. Having 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.