The value of Ferryhill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ferryhill can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Ferryhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Benjamin, came perilously close to the 80-year mark with the lease on his first floor flat in Ferryhill. In buying his home two decades ago, the lease term was of minimal significance. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Benjamin was able to extend his lease just under the wire in June. Benjamin and the freeholder subsequently agreed on a premium of £5,000 . If the lease had slid below eighty years, the figure would have gone up by a minimum £1,075.
Dr Henry López bought a recently refurbished flat in Ferryhill in April 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Ferryhill with 100 year plus lease were worth £210,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2106. Given that there were 80 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Mrs T Martin completed a ground floor apartment in Ferryhill in October 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Ferryhill with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed yearly. The lease expired in 2095. Given that there were 69 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.