Ferryside leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Ferryside will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Ferryside leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her garden apartment in Ferryside, Chloe started the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work was finalised in July 2011. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. K Díaz , who took over the lease of a first floor apartment in Ferryside in August 2000. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable properties in Ferryside with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 invoiced yearly. The lease lapsed in 2078. Given that there were 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.
In 2014 we were contacted by Mr and Mrs. G Dupont who, having purchased a one bedroom flat in Ferryside in September 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in Ferryside with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated in 2098. Given that there were 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including legals.