When it comes to long leasehold property in Selsey, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Selsey with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When the lease term has below eighty years left, under the current legislation the landlord can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Selsey with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Selsey,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Selsey valuers.
Jasper was the the leasehold proprietor of a 2 bedroom flat in Selsey being sold with a lease of a little over 61 years outstanding. Jasper informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were called by Mr and Mrs. M Clarke who, having was assigned a lease of a first floor flat in Selsey in March 2001. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical properties in Selsey with an extended lease were worth £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease finished on 16 June 2104. Taking into account 79 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
In 2010 we were approached by Mr U Bailey who, having acquired a basement apartment in Selsey in March 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Selsey with a long lease were worth £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed on 13 July 2084. Taking into account 59 years unexpired we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.