The market value of Ferndown leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is below than eighty years
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Ferndown leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dexter was the the leasehold proprietor of a 2 bedroom apartment in Ferndown on the market with a lease of a little over 61 years left. Dexter on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2014 we were phoned by Mrs Phoebe Phillips who, having completed a ground floor apartment in Ferndown in February 1997. The question was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar flats in Ferndown with a long lease were valued about £235,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 21 July 2088. Considering the 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
Dr Isaac Torres acquired a garden flat in Ferndown in April 2011. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative homes in Ferndown with an extended lease were worth £174,200. The average ground rent payable was £55 collected annually. The lease expiry date was in 2077. Considering the 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.