North Ferriby leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in North Ferriby will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with undertake North Ferriby 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.
Trailing unsuccessful negotiations with the freeholder of her basement flat in North Ferriby, Chelsea commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction was finalised in April 2008. The landlord’s charges were negotiated to approximately 550 GBP.
Last month we were phoned by Mr and Mrs. P Johnson , who acquired a one bedroom apartment in North Ferriby in August 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar flats in North Ferriby with a long lease were valued about £270,000. The mid-range ground rent payable was £55 billed per annum. The lease ended on 9 February 2100. Considering the 75 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr and Mrs. L Brown owned a one bedroom flat in North Ferriby in November 2007. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in North Ferriby with an extended lease were worth £173,800. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed in 2080. Given that there were 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.