Top reasons for Ferndown lease extension

Why you should start your Ferndown lease extension today:

Increase your lease and increase your Ferndown property value

With a long leasehold property in Ferndown, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Ferndown with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Ferndown property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions will not finance a property with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Ferndown lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Ferndown,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ferndown valuers.

Ferndown Lease Extension Case Summaries:

Ryan, Ferndown, Dorset,

Ryan was the the leasehold owner of a high value flat in Ferndown being sold with a lease of just over sixty years outstanding. Ryan on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Ferndown case:

Last Winter we were phoned by Mrs Rachael Girard , who completed a studio flat in Ferndown in October 2005. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical homes in Ferndown with an extended lease were valued around £200,000. The average ground rent payable was £50 collected monthly. The lease ended on 24 March 2102. Taking into account 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.

Ferndown case:

Ms W Ramírez purchased a newly refurbished apartment in Ferndown in April 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Ferndown with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced per annum. The lease elapsed in 2092. Having 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus expenses.