Ferndown residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ferndown,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ferndown valuers.
In the wake of eight months of protracted discussions with the landlord of her leasehold apartment in Ferndown, Naomi started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in October 2009. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. U González was assigned a lease of a ground floor apartment in Ferndown in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Ferndown with 100 year plus lease were worth £206,200. The average ground rent payable was £60 collected annually. The lease lapsed in 2082. Having 56 years left we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
In 2013 we were e-mailed by Mrs L Gunderson who, having completed a one bedroom apartment in Ferndown in November 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Ferndown with an extended lease were valued around £200,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed in 2102. Taking into account 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.