Selhurst leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Selhurst enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Selhurst you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Selhurst with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Selhurst leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Alfie, started to get near to the 80-year threshold with the lease on his leasehold flat in Selhurst. Having purchased his property 18 years previously, the unexpired term was of little significance. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Alfie extended the lease at the eleventh hour in September. Alfie and the freeholder via the management company eventually agreed on a premium of £5,000 . If the lease had slid below 80 years, the premium would have gone up by a minimum £1,025.
Last Spring we were contacted by Mrs O Dupont , who bought a purpose-built flat in Selhurst in October 2005. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical residencies in Selhurst with an extended lease were in the region of £203,200. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 2 June 2086. Taking into account 61 years outstanding we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of fees.
An example of a Lease Extension case for a Selhurst premises is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case was in relation to 1 flat. The unexpired term was 26.38 years.