North Ferriby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying North Ferriby residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in North Ferriby you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in North Ferriby with more than 100 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 landlord in North Ferriby,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Ferriby valuers.
During the course of the last few months Dexter, started to get near to the 80-year mark with the lease on his studio apartment in North Ferriby. In buying his home 18 years ago, the lease term was of no significance. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Dexter arranged for a lease extension at the eleventh hour last August. Dexter and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had slipped lower than eighty years, the price would have become more costly by at least £900.
Last year we were contacted by Dr Eli Jones , who purchased a one bedroom apartment in North Ferriby in February 2011. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Similar premises in North Ferriby with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected annually. The lease lapsed in 2083. Having 57 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
Mrs Charlotte White purchased a one bedroom flat in North Ferriby in September 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in North Ferriby with 100 year plus lease were valued around £245,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2094. Considering the 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.