There is no doubt about it a leasehold property in Ferring is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years unexpired 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 primary logic behind why you should consider extending sooner than later. Many flat owners in Ferring will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Ferring leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold proprietor of a conversion flat in Ferring on the market with a lease of just over 59 years unexpired. Henry on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
Mr C Collins took over the lease of a one bedroom flat in Ferring in February 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Ferring with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed annually. The lease ran out on 25 August 2086. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including expenses.
In 2014 we were phoned by Mr Milo Cox who, having acquired a basement apartment in Ferring in September 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical properties in Ferring with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out in 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.