The closer a domestic lease in Ferryhill gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Ferryhill will qualify for this right; that being said a conveyancer should be able to confirm whether 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 accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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 also be not less than 75 years at the outset of the mortgage. |
| 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 conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Matthew owned a 2 bedroom apartment in Ferryhill being sold with a lease of just over sixty years outstanding. Matthew on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last October we were phoned by Mr and Mrs. G Moreau , who moved into a garden flat in Ferryhill in May 2008. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar premises in Ferryhill with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease finished in 2075. Taking into account 50 years unexpired we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of legals.
In 2011 we were approached by Ms Rachel Baker who, having took over the lease of a ground floor apartment in Ferryhill in October 1997. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative premises in Ferryhill with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 18 June 2095. Taking into account 70 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.