Purley leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Purley will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Purley with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Purley can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
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 a wealth of experience dealing with Purley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the landlord of her two bedroom flat in Purley, Rhiannon started the lease extension process as the 80 year threshold was rapidly advancing. The legal work was concluded in June 2012. The freeholder’s charges were kept to an absolute minimum.
Last August we were called by Ms W Murphy , who purchased a basement flat in Purley in March 1997. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Purley with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2075. Given that there were 50 years remaining we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including professional charges.
An example of a Freehold Enfranchisement case for a Purley flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case affected 6 flats. The remaining number of years on the lease was 78.32 years.