The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ferring have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Ferring lease extension. Shelving the costs today simply increases the price you will eventually be required to pay to extend the lease.
Leasehold properties in Ferring with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancing solicitors that we work with handle Ferring 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 lawyer we work with provide it.
Last year Dexter, came very near to the eighty-year mark with the lease on his basement flat in Ferring. In buying his flat 18 years ago, the unexpired term was of little concern. Fortunately, he recognised he needed to take steps soon on a lease extension. Dexter was able to extend his lease just in the nick of time in September. Dexter and the freeholder via the management company subsequently settled on sum of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,100.
In 2011 we were e-mailed by Mr C Rivera who, having acquired a recently refurbished flat in Ferring in September 2001. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical premises in Ferring with 100 year plus lease were valued about £210,600. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed on 11 September 2087. Given that there were 62 years remaining we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
Last Summer we were e-mailed by Mr and Mrs. S Wright , who purchased a recently refurbished flat in Ferring in May 2012. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative properties in Ferring with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was in 2098. Considering the 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.