Why you should commence your Ferring lease extension

Main reasons to commence your Ferring lease extension today:

Increase your lease and increase your Ferring property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ferring. Inevitably, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Ferring have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give due deliberation before putting off your Ferring lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease

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

Leasehold residencies in Ferring with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to finance a property with a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Ferring lease extensions?

Irrespective of whether you are a tenant or a freeholder in Ferring,the lease extension experts 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 Ferring valuers.

Ferring Lease Extension Example Cases:

Michael, Ferring, West Sussex,

Michael owned a high value apartment in Ferring on the market with a lease of a few days over 72 years unexpired. Michael informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and secured satisfactory resolution informally and sell the property.

Ferring case:

In 2013 we were called by Mr and Mrs. U David who, having moved into a one bedroom flat in Ferring in February 2000. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative flats in Ferring with a long lease were worth £285,000. The average amount of ground rent was £55 collected annually. The lease concluded on 5 July 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.

Ferring case:

In 2013 we were contacted by Mr and Mrs. T Parker who, having completed a studio flat in Ferring in November 2001. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar residencies in Ferring with a long lease were worth £193,400. The average ground rent payable was £65 billed every twelve months. The lease finished in 2085. Given that there were 59 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.