There is no doubt about it a leasehold flat or house in Selhurst is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Selhurst will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure 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.
In 2014 Omar, started to get close to the 80-year mark with the lease on his purpose- built flat in Selhurst. In buying his flat two decades ago, the length of the lease was of no interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Omar extended the lease at the eleventh hour in July. Omar and the freeholder eventually settled on the final figure of £6,000 . If the lease had gone below eighty years, the figure would have escalated by at least £1,150.
In 2012 we were approached by Ms V Bell who, having was assigned a lease of a recently refurbished flat in Selhurst in August 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Selhurst with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease termination date was on 13 March 2094. Given that there were 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of expenses.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired residue of the current lease was 26.38 years.