The only way is down when it comes to Purley lease terms. Purley leaseholds that have a remaining term lower than eighty years will drop in value even faster, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Purley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Purley valuers.
Last year Caleb, started to get close to the eighty-year threshold with the lease on his studio flat in Purley. Having bought his flat 19 years ago, the length of the lease was of little concern. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Caleb arranged for a lease extension just under the wire in July. Caleb and the freeholder in the end settled on sum of £5,000 . If the lease had fallen lower than eighty years, the amount would have increased by at least £950.
Last Christmas we were contacted by Mrs Hollie James , who was assigned a lease of a one bedroom flat in Purley in March 2004. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Purley with an extended lease were valued about £200,800. The average amount of ground rent was £65 billed every twelve months. The lease elapsed in 2085. Considering the 60 years remaining we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus professional charges.
An example of a Freehold Enfranchisement decision for a Purley premises 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 was 78.32 years.