Top reasons for Selsey lease extension

Main reasons to start your Selsey lease extension today:

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

As the length of the unexpired term of a Selsey residential lease lessens so does its value and therefore the value of your property. If the residual term has, beyond one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Selsey will qualify for this right; nevertheless a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Selsey with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may not grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This may be problematic once you wish to dispose of or refinance your property as it will be effectively unmortgageable. You may not have an immediate desire to sell but when you do your purchaser must hold off for 2 years before they can exercise the right to a an extension to the lease.

What makes us experts in Selsey lease extensions?

The lawyers that we work with undertake Selsey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Selsey Lease Extension Case Summaries:

Olivia, Selsey, West Sussex,

In the wake of 6 months of protracted discussions with the freeholder of her one bedroom flat in Selsey, Olivia initiated the lease extension process as the eighty year deadline was quickly nearing. The transaction completed in February 2007. The freeholder’s fees were kept to an absolute minimum.

Selsey case:

In 2011 we were called by Mr Austin Mercier who, having bought a basement flat in Selsey in October 2006. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative flats in Selsey with a long lease were valued about £246,800. The average amount of ground rent was £60 invoiced yearly. The lease lapsed on 17 May 2076. Taking into account 50 years left we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.

Selsey case:

Last Christmas we were approach by Dr James Pérez , who purchased a first floor apartment in Selsey in November 1996. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparative flats in Selsey with 100 year plus lease were worth £203,200. The average ground rent payable was £65 billed annually. The lease ran out in 2087. Given that there were 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including costs.