The re-sale value of a leasehold property in Ferring depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded prior to the eighty year threshold. Current legislation enables Ferring qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Ferring with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Ferring can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 in-depth market knowledge procuring Ferring lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Kyle, started to get close to the 80-year threshold with the lease on his ground floor apartment in Ferring. In buying his flat 19 years previously, the lease term was of minimal interest. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Kyle arranged for a lease extension just under the wire in June. Kyle and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,000.
In 2014 we were contacted by Mrs R Bertrand who, having owned a basement apartment in Ferring in August 1999. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical properties in Ferring with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2079. Given that there were 53 years remaining we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of costs.
Ms J Nelson was assigned a lease of a one bedroom flat in Ferring in May 1995. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Ferring with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 billed per annum. The lease ended in 2090. Having 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus fees.