Unfortunately that a Ferndown residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Ferndown property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Ferndown will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Ferndown with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Ferndown can be a difficult process. We recommend you get professional help 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 dealing with Ferndown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Lucas, started to get close to the 80-year mark with the lease on his basement apartment in Ferndown. Having purchased his home twenty years ago, the unexpired term was of little concern. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Lucas arranged for a lease extension at the eleventh hour last August. Lucas and the freeholder in the end agreed on sum of £5,500 . If the lease had fallen lower than 80 years, the amount would have escalated by at least £925.
In 2012 we were approached by Mr and Mrs. G Roux who, having owned a one bedroom flat in Ferndown in October 2003. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Ferndown with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 invoiced yearly. The lease ended in 2091. Considering the 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
Last Christmas we were phoned by Ms Lily Clarke , who owned a purpose-built flat in Ferndown in June 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Ferndown with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed in 2080. Having 55 years left we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.