There is no doubt about it a leasehold property in Ferryhill is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Ferryhill will meet the qualifying criteria; however a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 lawyers that we work with procure Ferryhill 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 conveyancer we work with provide it.
Half a year ago Stanley, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Ferryhill. Having purchased his home twenty years ago, the unexpired term was of little bearing. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Stanley arranged for a lease extension at the eleventh hour in July. Stanley and the freeholder via the management company eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £900.
Last Spring we were called by Mr B Bertrand , who took over the lease of a garden apartment in Ferryhill in September 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Ferryhill with a long lease were in the region of £285,000. The average amount of ground rent was £45 billed annually. The lease ended on 9 February 2097. Considering the 71 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
In 2011 we were phoned by Mr and Mrs. F Bailey who, having acquired a garden apartment in Ferryhill in May 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative premises in Ferryhill with 100 year plus lease were valued about £225,800. The average ground rent payable was £60 billed monthly. The lease terminated on 2 January 2086. Having 60 years remaining we approximated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 plus fees.