Ferryside leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Ferryside will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
The conveyancing solicitors that we work with procure Ferryside 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 recent months Nathaniel, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Ferryside. In buying his property 18 years previously, the lease term was of minimal importance. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Nathaniel arranged for a lease extension at the eleventh hour last April. Nathaniel and the landlord ultimately agreed on an amount of £5,000 . If the lease had descended below eighty years, the sum would have become more exhorbitant by at least £1,100.
Last year we were e-mailed by Mr and Mrs. H Peterson , who owned a one bedroom apartment in Ferryside in November 2008. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Ferryside with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2075. Given that there were 50 years unexpired we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.
Last year we were phoned by Mr and Mrs. H Torres , who moved into a garden apartment in Ferryside in September 2011. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Ferryside with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish on 20 November 2095. Given that there were 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.