North Ferriby leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in North Ferriby will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in North Ferriby can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring North Ferriby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her two bedroom apartment in North Ferriby, Yasmin commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction completed in November 2007. The freeholder’s charges were negotiated to a tad over 600 pounds.
Last Autumn we were approach by Mr Isaac Evans , who acquired a first floor flat in North Ferriby in August 2006. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in North Ferriby with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 collected annually. The lease concluded in 2075. Given that there were 51 years remaining we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of costs.
Mr and Mrs. V Alexander purchased a purpose-built flat in North Ferriby in May 1996. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in North Ferriby with a long lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease concluded on 2 October 2086. Given that there were 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus costs.