Selsey leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Flat owners in Selsey will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Selsey,the lease extension solicitors that we work with will always be happy 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.
Following unsuccessful correspondence with the landlord of her ground floor flat in Selsey, Nicole started the lease extension process just as the lease was nearing the critical eighty-year threshold. The legal work completed in November 2007. The landlord’s charges were restricted to approximately 500 GBP.
Dr V Jackson purchased a purpose-built flat in Selsey in February 2001. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar flats in Selsey with an extended lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected per annum. The lease finished on 12 April 2093. Taking into account 67 years outstanding we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus legals.
Last Autumn we were contacted by Mr and Mrs. T Mitchell , who acquired a garden apartment in Selsey in January 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Selsey with a long lease were worth £280,000. The average ground rent payable was £55 billed yearly. The lease concluded in 2104. Given that there were 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.