The value of Ferryside leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is below than 80 years
Leasehold premises in Ferryside with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Ferryside,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ferryside valuers.
In the wake of 9 months of protracted negotiations with the freeholder of her basement flat in Ferryside, Hollie initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was finalised in August 2011. The freeholder’s charges were negotiated to about 500 pounds.
Mr A Moore owned a studio apartment in Ferryside in October 2009. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Ferryside with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out on 17 May 2079. Having 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
Ms K Jackson was assigned a lease of a first floor apartment in Ferryside in June 1995. The question was if we could approximate the price would likely be to extend the lease by an additional years. Similar properties in Ferryside with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease end date was on 7 May 2099. Considering the 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.