The market value of North Ferriby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in North Ferriby with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in North Ferriby,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Ferriby valuers.
Last Christmas Oscar, started to get close to the eighty-year threshold with the lease on his leasehold apartment in North Ferriby. Having bought his home 19 years previously, the unexpired term was of little relevance. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Oscar arranged for a lease extension at the eleventh hour in August. Oscar and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have gone up by at least £1,050.
In 2014 we were contacted by Mr and Mrs. U Allen who, having bought a ground floor apartment in North Ferriby in January 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in North Ferriby with a long lease were in the region of £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated on 25 February 2082. Taking into account 56 years left we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus expenses.
In 2011 we were called by Mr and Mrs. D Lewis who, having owned a purpose-built apartment in North Ferriby in September 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative flats in North Ferriby with a long lease were valued around £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 21 September 2093. Considering the 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including legals.