Unfortunately that a Ferryside residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ferryside property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Ferryside will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Ferryside with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Nationwide Building Society |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Austin was the the leasehold proprietor of a 2 bedroom flat in Ferryside on the market with a lease of a little over 72 years left. Austin informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2014 we were approached by Dr Eleanor André who, having moved into a first floor flat in Ferryside in July 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative flats in Ferryside with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease finished on 15 November 2095. Taking into account 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
In 2009 we were e-mailed by Dr N Miller who, having took over the lease of a one bedroom flat in Ferryside in May 1998. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Ferryside with a long lease were valued about £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 10 June 2084. Taking into account 58 years left we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.