Top reasons for Ferndown lease extension

Why you should start your Ferndown lease extension today:

Increase your lease and increase your Ferndown property value

Unfortunately that a Ferndown residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Ferndown property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Ferndown will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.

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

It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.

Mortgage lenders may not grant a mortgage with a short lease

Nearly all mortgage companies will not lend on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this could result in your Ferndown property being difficult to sell or remortgage.

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

Irrespective of whether you are a tenant or a landlord in Ferndown,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ferndown valuers.

Ferndown Lease Extension Case Studies:

Anna, Ferndown, Dorset,

Subsequent to unsuccessful correspondence with the landlord of her leasehold flat in Ferndown, Anna initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was concluded in March 2013. The landlord’s fees were restricted to slightly above 500 pounds.

Ferndown case:

In 2009 we were contacted by Dr J Davis who, having was assigned a lease of a one bedroom apartment in Ferndown in January 1999. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable homes in Ferndown with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expiry date was on 3 February 2098. Given that there were 72 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 fees.

Ferndown case:

Dr Leon Jackson was assigned a lease of a basement flat in Ferndown in May 2003. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Ferndown with a long lease were worth £235,600. The mid-range ground rent payable was £60 collected yearly. The lease expired in 2088. Having 62 years remaining we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.