Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Battlesbridge. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Battlesbridge have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Battlesbridge lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Battlesbridge with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Battlesbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Seth, came precariously close to the eighty-year mark with the lease on his garden flat in Battlesbridge. In buying his property twenty years previously, the length of the lease was of little importance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Seth extended the lease at the eleventh hour in May. Seth and the landlord eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £875.
Mr V Scott moved into a first floor apartment in Battlesbridge in August 2000. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical properties in Battlesbridge with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2103. Having 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Dr H Nelson acquired a studio apartment in Battlesbridge in January 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical flats in Battlesbridge with 100 year plus lease were valued about £183,600. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2083. Given that there were 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.