The value of Battlesbridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than 80 years
Leasehold properties in Battlesbridge with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Battlesbridge,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Battlesbridge valuers.
Ollie owned a conversion flat in Battlesbridge being sold with a lease of just over 61 years outstanding. Ollie on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were e-mailed by Mr Cameron Hernández who, having was assigned a lease of a one bedroom flat in Battlesbridge in February 1995. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Battlesbridge with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish in 2099. Given that there were 73 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 fees.
In 2011 we were e-mailed by Mr and Mrs. C Lefebvre who, having acquired a one bedroom flat in Battlesbridge in February 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative properties in Battlesbridge with an extended lease were valued around £264,000. The average amount of ground rent was £60 invoiced annually. The lease finished in 2079. Taking into account 53 years outstanding we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.