It’s a harsh certainty that a Ferryhill residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Ferryhill property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Ferryhill will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Ferryhill with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Ferryhill leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a high value flat in Ferryhill being sold with a lease of just over 59 years left. Eliot informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were contacted by Dr V François who, having bought a garden apartment in Ferryhill in January 1998. The question was if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Ferryhill with a long lease were in the region of £280,000. The average ground rent payable was £45 billed monthly. The lease came to a finish on 8 March 2096. Considering the 70 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
Last Christmas we were approach by Mr and Mrs. E James , who acquired a purpose-built apartment in Ferryhill in May 2006. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar residencies in Ferryhill with an extended lease were worth £223,400. The average amount of ground rent was £60 collected per annum. The lease ended on 21 August 2085. Considering the 59 years left we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of fees.