Ferryside leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Flat owners in Ferryside will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Ferryside with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with undertake 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.
In the wake of eight months of protracted discussions with the landlord of her purpose-built flat in Ferryside, Rebecca commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work was finalised in September 2014. The freeholder’s costs were negotiated to about 650 GBP.
Last Autumn we were called by Mr and Mrs. D Turner , who owned a one bedroom flat in Ferryside in January 2003. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Ferryside with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease terminated in 2096. Given that there were 71 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2013 we were e-mailed by Dr T Cook who, having completed a first floor flat in Ferryside in November 2009. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar flats in Ferryside with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 billed monthly. The lease ran out on 12 January 2085. Taking into account 60 years unexpired we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of professional charges.