It’s a harsh certainty that a North Ferriby residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the North Ferriby property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in North Ferriby will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in North Ferriby with over one hundred years remaining on the lease are sometimes regarded as a ‘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 maintenance charges justify it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 professional help from a conveyancing solicitor and surveyor with experience in this area.
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 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.
During the course of the last few months Muhammad, started to get near to the 80-year threshold with the lease on his first floor apartment in North Ferriby. Having purchased his flat twenty years previously, the unexpired term was of little bearing. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Muhammad extended the lease just ahead of time in August. Muhammad and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If the lease had gone below eighty years, the sum would have become more exhorbitant by a minimum £875.
Mr and Mrs. K Hill acquired a one bedroom flat in North Ferriby in May 1997. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in North Ferriby with a long lease were valued about £275,000. The average ground rent payable was £55 invoiced annually. The lease expired in 2102. Taking into account 77 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
Mr and Mrs. Y Bonnet bought a one bedroom flat in North Ferriby in February 1999. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable residencies in North Ferriby with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2082. Having 57 years remaining we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.