Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ferndown. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Ferndown have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Ferndown lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Ferndown with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Ferndown lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of eight months of lengthy discussions with the landlord of her basement flat in Ferndown, Ella initiated the lease extension process as the eighty year mark was rapidly advancing. The legal work was concluded in September 2008. The freeholder’s fees were kept to an absolute minimum.
Mrs H Morris acquired a garden flat in Ferndown in March 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Ferndown with an extended lease were valued around £280,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish on 10 July 2093. Having 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Last Spring we were e-mailed by Ms Y Rogers , who bought a garden apartment in Ferndown in January 1998. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar premises in Ferndown with a long lease were worth £216,000. The mid-range ground rent payable was £60 invoiced yearly. The lease ended in 2082. Considering the 58 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.