Ferryhill leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Ferryhill will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| 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 conveyancers that we work with undertake 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 lawyer we work with provide it.
Subsequent to lengthy negotiations with the landlord of her garden apartment in Ferryhill, Erin started the lease extension process as the 80 year deadline was quickly advancing. The lease extension completed in July 2005. The freeholder’s fees were restricted to less than 700 pounds.
Dr Bethany Mercier completed a ground floor apartment in Ferryhill in June 1999. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical flats in Ferryhill with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 collected monthly. The lease lapsed in 2088. Given that there were 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Dr W Pérez took over the lease of a one bedroom apartment in Ferryhill in August 1995. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical homes in Ferryhill with a long lease were in the region of £174,200. The average ground rent payable was £55 collected quarterly. The lease concluded on 7 July 2077. Considering the 51 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.