As the length of the unexpired term of a Ferryhill residential lease diminished so does its value and therefore the value of your property. Where the lease has, more than 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 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 reason why you should extend the lease sooner as opposed to later. Most flat owners in Ferryhill will qualify for this right; however a lawyer should be able to confirm if you qualify for a lease extension. In certain 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 generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you increased control over the value of your Ferryhill leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ben owned a conversion apartment in Ferryhill being sold with a lease of a few days over 61 years remaining. Ben on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Autumn we were phoned by Mr and Mrs. S Nelson , who completed a first floor apartment in Ferryhill in August 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Ferryhill with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 7 July 2100. Having 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
In 2009 we were contacted by Mr F Green who, having moved into a basement flat in Ferryhill in February 2011. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Ferryhill with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced annually. The lease expired in 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.