Ferryside Lease Extension - Free Consultation

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Top reasons for Ferryside lease extension

Top reasons for lease extension now:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ferryside. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Ferryside have the right to extend the lease for an additional 90 years under legislation. Please give due attention before delaying your Ferryside lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease

Ferryside property with a lease extension has roughly the same value as a freehold

Leasehold premises in Ferryside with over 100 years left 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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may not issue a mortgage with a short lease

Many banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will contemplate lending on it. Even if you don't require a mortgage, you should be aware that it is reasonable to assume that someone intending to purchase your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the value of the property could be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to accept

Lender Requirement
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.
Leeds Building Society 85 years remaing from the start of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
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

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

The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.

Ferryside Lease Extension Case Studies:

Ali, Ferryside, Ammanford,

Ali owned a studio flat in Ferryside being marketed with a lease of a few days over 59 years unexpired. Ali on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Ferryside case:

Dr V Phillips acquired a garden flat in Ferryside in March 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Ferryside with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 9 May 2098. Taking into account 75 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.

Ferryside case:

In 2013 we were e-mailed by Dr John Jones who, having bought a one bedroom flat in Ferryside in November 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Ferryside with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 collected quarterly. The lease ended on 1 July 2087. Taking into account 64 years remaining we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.