Ferryhill leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Ferryhill will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Ferryhill leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Kian, came dangerously close to the eighty-year mark with the lease on his purpose- built apartment in Ferryhill. Having purchased his property 19 years previously, the unexpired term was of no concern. Luckily, he realised he needed to take steps soon on Extending the lease. Kian was able to extend his lease just ahead of time last August. Kian and the landlord ultimately settled on sum of £5,000 . If he not met the deadline, the premium would have increased by a minimum £1,050.
In 2010 we were phoned by Mr and Mrs. L Wright who, having owned a one bedroom flat in Ferryhill in May 1999. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical homes in Ferryhill with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed monthly. The lease elapsed on 26 March 2097. Considering the 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Last September we were phoned by Mr Kai Reed , who bought a one bedroom apartment in Ferryhill in November 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Ferryhill with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 collected per annum. The lease expiry date was in 2086. Taking into account 61 years outstanding we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.