There is no doubt about it a leasehold flat or house in Selsdon is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Selsdon will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Selsdon with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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. |
Engaging our service will provide you better control over the value of your Selsdon leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Samuel, started to get close to the 80-year mark with the lease on his one bedroom flat in Selsdon. In buying his home 19 years previously, the lease term was of little importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Samuel was able to extend his lease just under the wire last January. Samuel and the landlord eventually agreed on the final figure of £6,000 . If the lease had descended to less than 80 years, the figure would have gone up by a minimum £1,050.
Last February we were phoned by Mr and Mrs. T Evans , who bought a recently refurbished apartment in Selsdon in August 2012. We are asked if we could estimate the price would be for a ninety year lease extension. Similar flats in Selsdon with 100 year plus lease were worth £173,800. The average amount of ground rent was £60 billed annually. The lease concluded in 2080. Considering the 55 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.
An example of a Freehold Enfranchisement case for a Selsdon flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case related to 6 flats. The unexpired term as at the valuation date was 78.32 years.