The market value of a leasehold property in Purfleet is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded well before the 80 year mark. Current legislation enables Purfleet qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Purfleet with over one hundred years unexpired 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Purfleet leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her purpose-built flat in Purfleet, Samantha started the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work was concluded in August 2013. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were called by Ms F Brown who, having owned a basement flat in Purfleet in October 2005. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar premises in Purfleet with an extended lease were valued about £200,800. The average amount of ground rent was £65 collected per annum. The lease terminated in 2086. Taking into account 60 years left we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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 was in relation to 13 flats. The remaining number of years on the lease was 76 years.