Ferndale leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Ferndale tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Ferndale you would be well advised to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you better control over the value of your Ferndale leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Aarav, came precariously close to the eighty-year mark with the lease on his one bedroom flat in Ferndale. In buying his home two decades ago, the lease term was of no relevance. by good luck, he realised he would soon be paying an escalated premium for a lease extension. Aarav was able to extend his lease just ahead of time in June. Aarav and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,075.
Last Winter we were called by Mr and Mrs. Y Lefebvre , who owned a recently refurbished flat in Ferndale in November 2002. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical residencies in Ferndale with a long lease were valued about £174,200. The average amount of ground rent was £55 collected per annum. The lease ended on 27 January 2077. Given that there were 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
Mr Michael Sharif took over the lease of a garden apartment in Ferndale in June 2002. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical flats in Ferndale with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 21 March 2097. Considering the 71 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.