For anyone whose Ferndown home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Ferndown with over 100 years unexpired 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 premises. In such circumstances there is often little upside in buying the freehold 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. |
| 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. |
| 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. |
Lease extensions in Ferndown can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ferndown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the landlord of her first floor apartment in Ferndown, Katie commenced the lease extension process as the eighty year threshold was swiftly coming. The legal work completed in July 2010. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Dr Laura Michel , who was assigned a lease of a first floor apartment in Ferndown in September 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Ferndown with an extended lease were in the region of £280,000. The average amount of ground rent was £45 billed yearly. The lease ended in 2095. Having 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Mr Finley Brown owned a studio apartment in Ferndown in October 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable residencies in Ferndown with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed on 3 November 2084. Given that there were 59 years outstanding we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of expenses.