Purley leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Purley will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Purley with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Engaging our service will provide you better control over the value of your Purley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Isaac, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Purley. In buying his property twenty years ago, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Isaac extended the lease just ahead of time last May. Isaac and the freeholder via the managing agents in the end settled on an amount of £5,500 . If the lease had fallen to less than 80 years, the price would have increased by a minimum £850.
Dr Jason Martínez purchased a recently refurbished flat in Purley in June 2003. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Purley with a long lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease expired in 2080. Given that there were 54 years outstanding we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of legals.
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 was in relation to 6 flats. The unexpired lease term was 78.32 years.