With a domestic leasehold premises in Ferryhill, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Residents in Ferryhill with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has below 80 years outstanding, under the current legislation the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Ferryhill with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 secure professional help from a lawyer and valuer 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 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.
Following lengthy discussions with the landlord of her purpose-built apartment in Ferryhill, Amber started the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work completed in February 2007. The landlord’s fees were negotiated to about 450 pounds.
In 2011 we were contacted by Mrs Y Martin who, having completed a studio flat in Ferryhill in January 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative properties in Ferryhill with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed monthly. The lease ended on 2 January 2081. Given that there were 55 years unexpired we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.
In 2014 we were phoned by Mr Kai Green who, having purchased a purpose-built apartment in Ferryhill in April 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Ferryhill with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished on 16 June 2101. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.