Chances are that where you own a flat in Ferryside you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a landlord in Ferryside,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ferryside valuers.
Following lengthy negotiations with the landlord of her first floor flat in Ferryside, Hannah commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work was finalised in February 2012. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. O Moreau who, having was assigned a lease of a studio flat in Ferryside in January 1998. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Ferryside with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £60 collected per annum. The lease expired on 9 January 2087. Given that there were 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including expenses.
Last Spring we were contacted by Dr L Cook , who owned a recently refurbished apartment in Ferryside in May 2009. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar premises in Ferryside with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected monthly. The lease ran out on 12 July 2076. Given that there were 51 years outstanding we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus legals.