Why you should start your North Ferriby lease extension

Top reasons for lease extension now:

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

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

An extended lease has roughly the same value as a freehold

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.

Lenders will not loan monies on a short lease

Lending institutions have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your North Ferriby home.

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

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.

North Ferriby Lease Extension Case Summaries:

Oscar, North Ferriby, East Yorkshire

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.

North Ferriby case:

In 2014 we were contacted by Mr and Mrs. U Allen who, having bought a ground floor apartment in North Ferriby in January 1998. 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.

North Ferriby case:

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.