As the the remaining lease term of a Purley domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible however 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 extend the lease without delay. Most flat owners in Purley will meet the qualifying criteria; however a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Purley with in excess of 100 years left on the lease are often regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Purley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Purley valuers.
Last Winter Max, started to get close to the eighty-year mark with the lease on his studio flat in Purley. In buying his home two decades ago, the length of the lease was of little importance. As luck would have it, he recognised he needed to take action soon on a lease extension. Max was able to extend his lease just in the nick of time last June. Max and the freeholder via the management company in the end settled on the final figure of £5,000 . If the lease had descended below 80 years, the price would have become more costly by a minimum £1,025.
Mr and Mrs. M Thomas took over the lease of a first floor flat in Purley in June 2006. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable flats in Purley with 100 year plus lease were valued about £183,600. The mid-range ground rent payable was £65 collected yearly. The lease elapsed on 1 March 2083. Given that there were 57 years unexpired we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.
An example of a Freehold Enfranchisement case 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 term as at the valuation date was 78.32 years.