The only way is down when it comes to Ferryhill lease terms. Ferryhill leaseholds that have a remaining term shorter than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Ferryhill with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Ferryhill 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.
Two years ago Milo, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Ferryhill. Having purchased his property two decades ago, the lease term was of no interest. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Milo extended the lease just in the nick of time in June. Milo and the landlord ultimately agreed on a premium of £6,000 . If the lease had slipped to less than eighty years, the amount would have escalated by at least £850.
Last Summer we were contacted by Dr Zachary Campbell , who bought a garden flat in Ferryhill in June 2001. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable premises in Ferryhill with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected per annum. The lease expired on 11 March 2093. Considering the 67 years left we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including expenses.
In 2009 we were contacted by Dr Erin Ali who, having purchased a one bedroom apartment in Ferryhill in January 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Ferryhill with a long lease were valued about £206,200. The mid-range amount of ground rent was £60 billed per annum. The lease elapsed on 8 July 2082. Considering the 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.