The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ferryhill have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Ferryhill lease extension. Putting off the costs today simply escalates the price you will eventually have to pay for a lease extension.
Leasehold premises in Ferryhill with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Ferryhill,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ferryhill valuers.
Subsequent to lengthy discussions with the freeholder of her one bedroom apartment in Ferryhill, Bethany commenced the lease extension process as the 80 year threshold was fast advancing. The lease extension was concluded in April 2006. The landlord’s costs were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. P Roux , who was assigned a lease of a one bedroom flat in Ferryhill in May 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable residencies in Ferryhill with an extended lease were worth £174,200. The average ground rent payable was £55 invoiced monthly. The lease expiry date was in 2075. Considering the 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
In 2011 we were e-mailed by Mrs A James who, having completed a purpose-built apartment in Ferryhill in June 2001. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable premises in Ferryhill with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 25 March 2095. Considering the 71 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.