The re-sale value of a leasehold property in Ferryside is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised well before the 80 year threshold. Leasehold Reform legislation enables Ferryside qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Ferryside with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Ferryside can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ferryside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Sebastian, came very near to the 80-year mark with the lease on his one bedroom flat in Ferryside. In buying his property 18 years previously, the unexpired term was of no significance. by good luck, he became aware that he needed to take action soon on a lease extension. Sebastian was able to extend his lease just ahead of time last April. Sebastian and the freeholder ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have escalated by at least £950.
Dr Rosie Scott moved into a one bedroom flat in Ferryside in February 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Ferryside with a long lease were valued around £200,000. The average ground rent payable was £50 billed annually. The lease terminated in 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Spring we were approach by Mr J Johnson , who moved into a garden flat in Ferryside in April 2009. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative premises in Ferryside with a long lease were in the region of £265,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 12 September 2092. Having 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including expenses.