Why you should commence your Ferndale lease extension

Main reasons to start your Ferndale lease extension today:

Increase your lease and increase your Ferndale property value

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ferndale. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Ferndale have the legal entitlement to extend the lease for a further 90 years under legislation. Do give due attention before putting off your Ferndale lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension

Ferndale property with a lease extension is almost the same value as a freehold

Leasehold residencies in Ferndale with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not finance a property on a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. In the past lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Ferndale lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your Ferndale leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Ferndale Lease Extension Example Cases:

Lydia, Ferndale, Abercynon,

After lengthy negotiations with the landlord of her garden flat in Ferndale, Lydia commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The legal work completed in May 2007. The freeholder’s fees were kept to an absolute minimum.

Ferndale case:

In 2014 we were e-mailed by Mr and Mrs. W Patel who, having owned a studio apartment in Ferndale in April 2012. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative homes in Ferndale with a long lease were in the region of £216,000. The average ground rent payable was £60 collected every twelve months. The lease concluded in 2084. Having 58 years outstanding we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.

Ferndale case:

In 2014 we were contacted by Mr A Jackson who, having moved into a one bedroom flat in Ferndale in May 2006. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Similar residencies in Ferndale with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ended in 2104. Taking into account 78 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.