With a residential leasehold property in Selhurst, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Selhurst with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has under eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Selhurst with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Selhurst lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After protracted negotiations with the freeholder of her one bedroom apartment in Selhurst, Lauren commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension was concluded in April 2005. The landlord’s costs were negotiated to slightly above 450 pounds.
Dr Katherine Garcia moved into a one bedroom apartment in Selhurst in July 2010. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative flats in Selhurst with 100 year plus lease were worth £256,600. The average amount of ground rent was £60 collected per annum. The lease concluded in 2077. Having 52 years remaining we calculated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 plus fees.
An example of a Lease Extension matter before the tribunal for a Selhurst residence 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 related to 1 flat. The unexpired residue of the current lease was 26.38 years.