The closer a residential lease in North Ferriby gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in North Ferriby will qualify for this right; however a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in North Ferriby with over 100 years left 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in North Ferriby,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Ferriby valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her ground floor apartment in North Ferriby, Yasmin commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension was concluded in November 2015. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. R Sharif , who owned a recently refurbished apartment in North Ferriby in August 2005. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in North Ferriby with 100 year plus lease were in the region of £168,800. The average amount of ground rent was £60 billed annually. The lease expired in 2081. Taking into account 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
Last Summer we were approach by Mr V Khan , who owned a first floor flat in North Ferriby in January 1995. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative homes in North Ferriby with a long lease were worth £235,200. The average amount of ground rent was £45 collected every twelve months. The lease finished in 2092. Having 66 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.