Unfortunately that a Ferndown residential lease is a deteriorating asset. As the lease term reduces 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 prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' in addition to 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 The majority of flat owners in Ferndown will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with more than one hundred 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 residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Ferndown leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Sebastian, started to get close to the 80-year threshold with the lease on his first floor flat in Ferndown. Having bought his property two decades ago, the lease term was of minimal bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Sebastian extended the lease just in the nick of time in August. Sebastian and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by at least £1,000.
Dr M Richardson purchased a one bedroom apartment in Ferndown in June 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Ferndown with a long lease were worth £233,200. The average ground rent payable was £60 collected yearly. The lease expired on 19 September 2086. Considering the 61 years left we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of fees.
Dr D Cooper owned a garden flat in Ferndown in March 2009. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Ferndown with a long lease were valued around £171,800. The mid-range amount of ground rent was £55 collected yearly. The lease concluded in 2075. Taking into account 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including costs.