There is no doubt about it a leasehold flat or house in Selsdon is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Selsdon will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Selsdon with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Selsdon,the lease extension experts that we work with will always be prepared 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.
Subsequent to lengthy discussions with the freeholder of her purpose-built flat in Selsdon, Olivia commenced the lease extension process as the 80 year mark was rapidly coming. The legal work was finalised in May 2013. The landlord’s fees were negotiated to about five hundred GBP.
Ms M White bought a basement flat in Selsdon in August 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Selsdon with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 19 November 2088. Taking into account 62 years as a residual term we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of legals.
An example of a Freehold Enfranchisement case 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 affected 6 flats. The unexpired residue of the current lease was 78.32 years.