When it comes to domestic leasehold premises in Battlesbridge, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Battlesbridge with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Battlesbridge with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake 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.
Omar owned a high value flat in Battlesbridge being marketed with a lease of fraction over 61 years outstanding. Omar on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last month we were approach by Mr and Mrs. E Campbell , who purchased a ground floor apartment in Battlesbridge in February 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Battlesbridge with a long lease were valued about £220,400. The average ground rent payable was £45 billed monthly. The lease lapsed in 2088. Given that there were 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.
Last Christmas we were called by Ms Y Ricardo , who owned a studio apartment in Battlesbridge in November 2011. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Battlesbridge with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease concluded on 2 August 2099. Given that there were 75 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.