Ferndown leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ferndown residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ferndown you really ought to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Ferndown flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ferndown can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Two years ago Cameron, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Ferndown. Having bought his property 19 years ago, the length of the lease was of no interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Cameron was able to extend his lease at the eleventh hour last July. Cameron and the freeholder via the managing agents eventually settled on sum of £5,500 . If he not met the deadline, the figure would have increased by at least £1,100.
Last Christmas we were phoned by Mr Thomas Johnson , who acquired a basement apartment in Ferndown in September 2007. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Ferndown with an extended lease were valued about £300,000. The average amount of ground rent was £50 billed yearly. The lease ran out on 27 August 2101. Given that there were 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Christmas we were approach by Mr Mason Smith , who took over the lease of a purpose-built flat in Ferndown in April 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar homes in Ferndown with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 collected per annum. The lease ran out on 8 September 2090. Taking into account 64 years left we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including legals.