It’s an underpublicised certainty that a Ferring and Goring residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Ferring and Goring property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Ferring and Goring will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Ferring and Goring can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ferring and Goring lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold owner of a conversion flat in Ferring and Goring on the market with a lease of just over 61 years unexpired. Leon informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and secured an acceptable resolution informally and readily saleable.
Last Autumn we were e-mailed by Mr and Mrs. J Williams , who purchased a one bedroom apartment in Ferring and Goring in August 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Ferring and Goring with a long lease were worth £166,400. The average amount of ground rent was £60 invoiced monthly. The lease finished on 9 February 2080. Given that there were 54 years unexpired we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.
Ms T Lambert moved into a garden flat in Ferring and Goring in May 2006. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical residencies in Ferring and Goring with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 billed per annum. The lease lapsed on 12 November 2091. Given that there were 65 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.