North Ferriby leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Leasehold owners in North Ferriby will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in North Ferriby with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Lease extensions in North Ferriby can be a difficult process. We recommend you procure 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 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.
Trailing lengthy negotiations with the freeholder of her leasehold flat in North Ferriby, Chloe initiated the lease extension process as the 80 year threshold was fast advancing. The legal work completed in October 2008. The landlord’s costs were negotiated to about 550 pounds.
Last Spring we were contacted by Mr T Martínez , who bought a ground floor flat in North Ferriby in April 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in North Ferriby with an extended lease were worth £265,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2099. Given that there were 74 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
In 2009 we were e-mailed by Dr A Cook who, having completed a purpose-built flat in North Ferriby in July 2000. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in North Ferriby with an extended lease were worth £166,400. The average ground rent payable was £60 billed per annum. The lease ended in 2079. Taking into account 54 years outstanding we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus professional charges.