The market value of a leasehold property in Purfleet is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded in advance of the 80 year mark. Current legislation enables Purfleet qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Purfleet with over 100 years unexpired on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Purfleet can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Purfleet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy discussions with the landlord of her one bedroom apartment in Purfleet, Olivia initiated the lease extension process as the eighty year deadline was quickly nearing. The legal work was concluded in May 2014. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. E Dupont purchased a one bedroom flat in Purfleet in November 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Purfleet with 100 year plus lease were worth £218,000. The average ground rent payable was £45 billed quarterly. The lease terminated in 2088. Taking into account 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including fees.
An example of a Lease Extension decision for a Purfleet flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The number of years remaining on the existing lease(s) was 76 years.