Ferryside leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Ferryside enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ferryside you should see if your lease has between seventy and 90 years left. There are compelling reasons why a Ferryside flat owner with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Ferryside with more than 100 years outstanding on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Ollie owned a 2 bedroom flat in Ferryside on the market with a lease of a little over fifty eight years remaining. Ollie informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ollie to exercise his statutory right. Ollie procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2013 we were approached by Mr Caleb François who, having was assigned a lease of a recently refurbished apartment in Ferryside in July 2009. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable homes in Ferryside with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected per annum. The lease ended in 2084. Having 59 years remaining we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including costs.
In 2014 we were e-mailed by Dr B Martin who, having owned a ground floor apartment in Ferryside in October 2011. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable premises in Ferryside with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced yearly. The lease ended in 2104. Considering the 79 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.