It’s a harsh truth that a North Ferriby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the North Ferriby property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. Most leasehold owners in North Ferriby will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in North Ferriby with over one hundred 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in North Ferriby can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring North Ferriby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley owned a high value apartment in North Ferriby being sold with a lease of a little over 61 years remaining. Finley on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2014 we were approached by Mr and Mrs. P Martínez who, having moved into a purpose-built flat in North Ferriby in November 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in North Ferriby with 100 year plus lease were valued about £193,400. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2085. Taking into account 59 years left we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
Dr Tyler Fournier was assigned a lease of a first floor apartment in North Ferriby in February 2001. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in North Ferriby with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected quarterly. The lease terminated in 2096. Given that there were 70 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.