It’s an underpublicised certainty that a Selsdon residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Selsdon property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Selsdon will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Selsdon,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Selsdon valuers.
In recent months Owen, came perilously near to the 80-year threshold with the lease on his studio apartment in Selsdon. In buying his home two decades ago, the lease term was of minimal significance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Owen extended the lease just under the wire last July. Owen and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he had missed the deadline, the figure would have gone up by at least £950.
Last November we were contacted by Mr and Mrs. S Roux , who took over the lease of a first floor flat in Selsdon in September 1996. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparative homes in Selsdon with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2100. Considering the 74 years remaining we approximated 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 remaining number of years on the lease was 78.32 years.