With a residential leasehold property in North Ferriby, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in North Ferriby with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has below 80 years remaining, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in North Ferriby with over 100 years remaining on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your North Ferriby leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Omar, started to get close to the eighty-year mark with the lease on his first floor apartment in North Ferriby. In buying his property 19 years previously, the length of the lease was of no relevance. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Omar arranged for a lease extension just under the wire in July. Omar and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he not met the deadline, the premium would have increased by at least £875.
In 2014 we were called by Dr I Davis who, having acquired a ground floor apartment in North Ferriby in September 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar homes in North Ferriby with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease expiry date was on 5 July 2079. Considering the 53 years remaining we calculated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.
Last Winter we were called by Mr Isaac Taylor , who purchased a one bedroom flat in North Ferriby in June 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar residencies in North Ferriby with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected yearly. The lease lapsed on 4 August 2090. Considering the 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of legals.