The closer a residential lease in Ferryside nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Ferryside will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with undertake Ferryside 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 lawyer we work with provide it.
Last October Jason, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Ferryside. In buying his home 18 years previously, the length of the lease was of no importance. Fortunately, he recognised he needed to take action soon on Extending the lease. Jason extended the lease just ahead of time last July. Jason and the freeholder via the management company subsequently settled on a premium of £5,000 . If he not met the deadline, the premium would have increased by at least £1,000.
Last Christmas we were contacted by Mr and Mrs. I Michel , who owned a one bedroom apartment in Ferryside in June 1995. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Similar homes in Ferryside with an extended lease were worth £206,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed in 2082. Given that there were 56 years remaining we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
Last Spring we were e-mailed by Mr and Mrs. A Phillips , who purchased a one bedroom flat in Ferryside in June 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Ferryside with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2102. Taking into account 76 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.