Purley leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Purley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Purley with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
Engaging our service gives you enhanced control over the value of your Purley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her garden apartment in Purley, Katherine started the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction completed in June 2010. The landlord’s costs were negotiated to slightly above 650 pounds.
Mrs I Martínez purchased a basement apartment in Purley in March 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Purley with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 22 May 2088. Having 62 years unexpired we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Purley flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case affected 6 flats. The unexpired residue of the current lease was 78.32 years.