The nearer a residential lease in Ferryhill nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Ferryhill will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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.
Alex was the the leasehold proprietor of a 2 bedroom apartment in Ferryhill on the market with a lease of a few days over fifty eight years unexpired. Alex on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last year we were e-mailed by Mrs W Gómez , who moved into a purpose-built apartment in Ferryhill in July 2012. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Ferryhill with a long lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired in 2089. Given that there were 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.
In 2009 we were e-mailed by Mr and Mrs. F Bennett who, having bought a newly refurbished apartment in Ferryhill in April 2002. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical homes in Ferryhill with 100 year plus lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced monthly. The lease ran out on 26 March 2078. Given that there were 52 years unexpired we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.