There is no doubt about it a leasehold property in Selsey is a wasting asset as a result of the diminishing lease term. If the lease has, more than one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Selsey will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Off the back of protracted negotiations with the freeholder of her garden apartment in Selsey, Kelsey initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The lease extension completed in October 2012. The landlord’s costs were kept to an absolute minimum.
Ms Amy Wright bought a one bedroom flat in Selsey in June 2010. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Selsey with an extended lease were in the region of £168,800. The average amount of ground rent was £60 billed quarterly. The lease expired on 3 July 2081. Taking into account 55 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
Mr Henry Edwards acquired a ground floor flat in Selsey in November 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical properties in Selsey with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 collected annually. The lease terminated in 2092. Considering the 66 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.