When it comes to residential leasehold premises in North Ferriby, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Anyone in North Ferriby with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has under 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in North Ferriby with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
The lawyers that we work with procure North Ferriby 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 lawyer we work with provide it.
Trailing unsuccessful discussions with the landlord of her leasehold apartment in North Ferriby, Imogen started the lease extension process as the 80 year threshold was quickly approaching. The legal work was concluded in November 2012. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were called by Dr A Anderson , who purchased a one bedroom apartment in North Ferriby in May 2003. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in North Ferriby with an extended lease were valued around £186,000. The mid-range ground rent payable was £65 collected monthly. The lease ended in 2079. Given that there were 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 not including costs.
In 2009 we were called by Mr and Mrs. T Lewis who, having completed a newly refurbished flat in North Ferriby in May 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative premises in North Ferriby with a long lease were valued about £250,000. The mid-range ground rent payable was £50 billed per annum. The lease end date was in 2090. Having 69 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.