Main reasons to commence your North Ferriby lease extension

Top reasons for lease extension now:

A North Ferriby lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in North Ferriby. Inevitably, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in North Ferriby have the right to extend the lease for an additional 90 years under statute. Do give due consideration before putting off your North Ferriby lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease

North Ferriby property with a lease extension has roughly the same value as a freehold

Leasehold premises in North Ferriby with over 100 years left 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not grant a mortgage on a short lease

Lenders are making their criteria more stringent and many now want flats to have at least sixty if not seventy years remaining once the mortgage has expired. As plenty of flats in North Ferriby were built in the fifties, sixties and seventies as a result many now need to be extended if they if they are to be mortgageable.

Get in touch with one of our North Ferriby lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in North Ferriby,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North Ferriby valuers.

North Ferriby Lease Extension Case Studies:

Eli, North Ferriby, East Yorkshire

In recent months Eli, came precariously close to the eighty-year threshold with the lease on his purpose- built flat in North Ferriby. In buying his flat two decades ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Eli arranged for a lease extension just under the wire in May. Eli and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have increased by a minimum £850.

North Ferriby case:

Last Christmas we were approach by Ms Alice Gómez , who purchased a purpose-built flat in North Ferriby in June 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in North Ferriby with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 24 June 2097. Having 71 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.

North Ferriby case:

Dr Amber James completed a garden apartment in North Ferriby in August 1998. The question was if we could approximate the price would be for a 90 year lease extension. Comparable flats in North Ferriby with an extended lease were worth £254,200. The average ground rent payable was £60 billed annually. The lease concluded in 2077. Given that there were 51 years left we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including costs.