Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Selhurst. Clearly, the period of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Selhurst have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give due attention before delaying your Selhurst lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Selhurst with more than one hundred years unexpired on the lease are often 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 justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Selhurst,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Selhurst valuers.
Trailing lengthy negotiations with the landlord of her two bedroom apartment in Selhurst, Victoria initiated the lease extension process as the 80 year deadline was fast nearing. The legal work completed in February 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. F Rivera was assigned a lease of a one bedroom flat in Selhurst in November 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Selhurst with 100 year plus lease were worth £246,800. The average ground rent payable was £60 billed yearly. The lease lapsed on 17 January 2076. Given that there were 50 years left we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus fees.
An example of a Lease Extension matter before the tribunal for a Selhurst property is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case affected 1 flat. The number of years remaining on the existing lease(s) was 26.38 years.