As the length of the unexpired term of a Purley domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Purley will meet the qualifying criteria; nevertheless a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Purley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Purley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago James, came precariously near to the eighty-year mark with the lease on his studio apartment in Purley. Having bought his property two decades ago, the length of the lease was of little relevance. Luckily, he noticed he would soon be paying way over the odds for a lease extension. James was able to extend his lease just under the wire last April. James and the landlord ultimately settled on sum of £6,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,100.
Mr and Mrs. S Allen was assigned a lease of a recently refurbished flat in Purley in September 2010. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable properties in Purley with a long lease were worth £285,000. The average amount of ground rent was £55 collected yearly. The lease ran out in 2104. Given that there were 79 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
An example of a Freehold Enfranchisement decision for a Purley residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case related to 6 flats. The number of years remaining on the existing lease(s) was 78.32 years.