Ferryside leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Ferryside residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ferryside you should investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Ferryside leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 freeholder 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.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Ferryside, Poppy commenced the lease extension process as the 80 year mark was rapidly advancing. The transaction completed in November 2007. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Dr M David who, having bought a first floor flat in Ferryside in August 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical properties in Ferryside with an extended lease were valued around £240,600. The average ground rent payable was £65 billed monthly. The lease expired on 16 November 2088. Having 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.
Last Winter we were approach by Mrs N David , who purchased a one bedroom flat in Ferryside in August 2012. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Ferryside with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expiry date was on 6 November 2077. Having 51 years left we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.