Main reasons to commence your Ferndown lease extension

Top reasons for lease extension now:

A Ferndown lease depreciates with the years remaining on the lease.

The nearer a domestic lease in Ferndown gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Ferndown will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to lend with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Ferndown lease extensions?

Engaging our service gives you enhanced control over the value of your Ferndown leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Ferndown Lease Extension Example Cases:

Harry, Ferndown, Dorset

In recent months Harry, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Ferndown. Having purchased his flat two decades ago, the lease term was of no importance. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Harry extended the lease at the eleventh hour last September. Harry and the landlord eventually agreed on sum of £6,000 . If the lease had gone to less than 80 years, the price would have escalated by a minimum £1,050.

Ferndown case:

In 2013 we were called by Mr and Mrs. F Díaz who, having was assigned a lease of a ground floor apartment in Ferndown in November 2007. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Ferndown with 100 year plus lease were worth £230,800. The average amount of ground rent was £60 collected annually. The lease ended in 2086. Considering the 60 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 plus professional charges.

Ferndown case:

In 2012 we were approached by Mr Edward Wilson who, having moved into a one bedroom apartment in Ferndown in March 2005. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Ferndown with an extended lease were valued about £166,800. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed on 21 July 2076. Having 50 years remaining we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of fees.