As the the remaining lease term of a Selsdon residential lease lessens so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be fractional that being said there will become a stage 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 be significant. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Selsdon will qualify for this right; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Selsdon with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Selsdon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Selsdon valuers.
Last year Luke, started to get close to the 80-year mark with the lease on his purpose- built flat in Selsdon. Having bought his property two decades ago, the unexpired term was of little importance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Luke extended the lease just under the wire last September. Luke and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £925.
Mr and Mrs. U Carter bought a ground floor apartment in Selsdon in April 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Selsdon with 100 year plus lease were worth £250,000. The average ground rent payable was £50 collected quarterly. The lease concluded in 2095. Given that there were 69 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement decision for a Selsdon residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired term as at the valuation date was 78.32 years.