Stop! Your Lease Extension in Purley Could Be FREE

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Many leaseholders in Purley are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Purley has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Purley lease extension

Why you should commence your Purley lease extension today:

Increase your lease and increase your Purley property value

Chances are that if you own a flat in Purley you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Banks and building societies do not like short residential leases. You are likely to encounter problems where you need to sell your flat in Purley if the remaining lease term is below the criteria set by most mortgage companies. Different lenders have different requirements but on the whole they are looking for an unexpired term of at least seventy years.

Lender Requirement
Leeds Building Society 85 years remaining from the start of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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
Royal Bank of Scotland Mortgage term plus 30 years.
Yorkshire Building Society 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.

Why use us for your lease extension in Purley?

The conveyancers that we work with handle Purley 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.

Purley Lease Extension Example Cases:

Seth, Purley, South London

In recent months Seth, started to get close to the 80-year threshold with the lease on his leasehold apartment in Purley. Having purchased his flat two decades ago, the unexpired term was of little interest. by good luck, he noticed he needed to take action soon on Extending the lease. Seth arranged for a lease extension just in the nick of time in January. Seth and the landlord in the end settled on a premium of £5,000 . If the lease had descended lower than 80 years, the premium would have escalated by at least £1,025.

Purley case:

In 2013 we were approached by Mr Cameron Gómez who, having took over the lease of a studio apartment in Purley in October 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Purley with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated in 2104. Considering the 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.

Decision in Croydon

An example of a Freehold Enfranchisement case for a Purley property 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 number of years remaining on the existing lease(s) was 78.32 years.