There is no doubt about it a leasehold property in Purley is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 100 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Purley will qualify for this right; that being said a conveyancer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Purley with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Purley can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
George owned a conversion flat in Purley being marketed with a lease of just over 61 years left. George on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory deal informally and sell the property.
In 2009 we were approached by Mr and Mrs. T Bertrand who, having acquired a one bedroom apartment in Purley in July 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable premises in Purley with a long lease were in the region of £183,600. The average ground rent payable was £65 collected yearly. The lease elapsed on 7 May 2081. Having 57 years unexpired we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Purley residence 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 number of years remaining on the existing lease(s) was 78.32 years.