There is no doubt about it a leasehold property in Selhurst is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Selhurst will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Selhurst with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Selhurst leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her studio apartment in Selhurst, Bethany commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work was concluded in November 2005. The freeholder’s charges were restricted to slightly above 450 pounds.
Mr and Mrs. L Mason bought a purpose-built apartment in Selhurst in August 2006. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in Selhurst with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished in 2099. Considering the 73 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension decision for a Selhurst premises 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 remaining number of years on the lease was 26.38 years.