With a long leasehold premises in North Ferriby, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Residents in North Ferriby with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once a lease has under eighty years outstanding, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in North Ferriby can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 a wealth of experience dealing with 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.
Jasper owned a studio flat in North Ferriby being marketed with a lease of a few days over fifty eight years remaining. Jasper informally contacted his landlord a well known local-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. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper procured expert advice and secured satisfactory deal informally and sell the property.
Dr Kai Parker moved into a ground floor apartment in North Ferriby in October 2006. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in North Ferriby with an extended lease were worth £166,400. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2079. Considering the 54 years remaining we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.
Last year we were approach by Mr and Mrs. H Scott , who completed a purpose-built flat in North Ferriby in August 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar flats in North Ferriby with an extended lease were valued about £227,800. The mid-range amount of ground rent was £45 invoiced yearly. The lease end date was in 2090. Considering the 65 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.