Why you should commence your Ferryhill lease extension

Top reasons for lease extension now:

A Ferryhill lease depreciates with the years remaining on the lease.

Ferryhill leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Ferryhill will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.

Ferryhill property with a lease extension is almost the same value as a freehold

Leasehold premises in Ferryhill with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not finance a property with a short lease

Most banks and building societies will not lend on a lease with less than 70 years left to run - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Ferryhill property becoming difficult to dispose of or refinance.

Get in touch with one of our Ferryhill lease extension solicitors or enfranchisement solicitors

The lawyers 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 conveyancer we work with provide it.

Ferryhill Lease Extension Case Summaries:

David, Ferryhill, County Durham

Last October David, came perilously close to the eighty-year mark with the lease on his purpose- built apartment in Ferryhill. Having bought his flat twenty years previously, the length of the lease was of minimal relevance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. David was able to extend his lease just ahead of time last September. David and the landlord ultimately settled on sum of £5,500 . If the lease had gone below eighty years, the price would have escalated by at least £1,100.

Ferryhill case:

Last Spring we were phoned by Mr and Mrs. J Miller , who moved into a purpose-built flat in Ferryhill in February 1996. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Ferryhill with an extended lease were worth £206,200. The average amount of ground rent was £60 billed every twelve months. The lease expired on 4 November 2082. Considering the 56 years unexpired we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus fees.

Ferryhill case:

Mr and Mrs. I Hill completed a basement flat in Ferryhill in April 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical properties in Ferryhill with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected annually. The lease termination date was on 20 November 2102. Having 76 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.