Top reasons for Selsey lease extension

Main reasons to commence your Selsey lease extension today:

A Selsey leasehold property depreciates with the years remaining on the lease.

Selsey leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Selsey will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.

Selsey property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Selsey lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Selsey,the lease extension solicitors 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 Selsey valuers.

Selsey Lease Extension Example Cases:

Abbie, Selsey, West Sussex,

Subsequent to protracted correspondence with the freeholder of her leasehold apartment in Selsey, Abbie started the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in June 2008. The freeholder’s charges were restricted to less than 500 pounds.

Selsey case:

Last Autumn we were contacted by Mr and Mrs. W Allen , who completed a purpose-built flat in Selsey in May 2010. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Selsey with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2088. Considering the 62 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.

Selsey case:

Mr and Mrs. F White acquired a garden apartment in Selsey in October 2012. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparative premises in Selsey with an extended lease were valued about £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 12 November 2099. Taking into account 73 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.