There is no doubt about it a leasehold property in Ferring and Goring is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 125 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Ferring and Goring will qualify for this right; however a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Ferring and Goring with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Ferring and Goring lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the landlord of her studio apartment in Ferring and Goring, Holly commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was concluded in January 2014. The freeholder’s fees were restricted to a tad over six hundred GBP.
In 2010 we were approached by Mr and Mrs. C Girard who, having bought a one bedroom apartment in Ferring and Goring in November 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Ferring and Goring with 100 year plus lease were valued around £261,600. The average amount of ground rent was £60 collected monthly. The lease terminated in 2078. Given that there were 52 years unexpired we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including fees.
In 2013 we were called by Dr D Norbert who, having bought a studio apartment in Ferring and Goring in August 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Ferring and Goring with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 billed per annum. The lease ran out in 2089. Given that there were 63 years outstanding we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.